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DUMP THE DUTY INCREASE NOW
Page 3
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We fear were beginning to sound like a scratched record. Every year the government holds its sword aloft in the spring and proclaims fuel duty rises are scheduled for the autumn. In response the industry quivers and shakes as it prepares to cope.
To date heavy lobbying by the FTA and RHA has meant swingeing fuel duty increases have been avoided. This time though the signs are ominous as the Treasury seems hell-bent on putting another 2p/lit on diesel duty next month and a further 2p next April. This is bad news for operators.
on strong trade and trucks are essential for this"
Raising fuel duty would bring in additional revenue to the Treasury and might act as a green tax for car users, but this is short-term folly the duty rise will further disadvantage UK operators who are faced with increasing competition from foreign hauliers benefiting from cheap diesel. Indeed, operators in the Netherlands, Belgium, France, Spain and Italy who already enjoy lower fuel bills than we do in the UK also benefit from fuel duty rebates. Why? Because those countries recognise that strong economies are built on strong trade and commerce and that trucks are essential to delivering the goods along those trade routes.
Sure, observers will argue that fuel cost increases are a transport management issue and that the cost needs to be shuffled on to the customer. This would be 100% right, if the industry were on a level playing field where foreign hauliers didn't have their operations subsidised by domestic incentives.
We wish the RHA well in its latest discussions with the Treasury (see news story, page 6). We worry, however, that there will be bad news ahead particularly given the Treasury's Initial response when the contents of the letter were brought to its attention by CM, which was that the fuel duty rises will go ahead no matter what.
So, ladies and gentlemen, brace yourselves...