Confusion follows in the wake of Brown's proposals
Page 6
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• by Miles Brignall
The government's pre-Budget proposals— which included a radical shake-up of the vehicle excise duty scheme—have left transport firms confused as to how t1-1 measures will hit operating costs.
On going to press, the Department ol Transport confirmed to Commercial Motor that hauliers applying for rebates on their present VED discs will receive their payments within 28 days of approval. Although the DOT was yet to release a table outlining who is entitled to what, it did reveal that rebates will fall between £150 and £4,500 per truck over 7.5 tonnes.
The scheme will apply to all vehicles with a current, six or 12-month VED disc on 30 November and to disks taken out between 1 December and next April.
Chancellor Gordon Brown claimed last week that further VED reforms will lead to trucks in the most competitive sector (40 tonnes) saving more than 12,000 a year, bringing them closer in line with VED rates across Europe.
"The average saving per lorry will be £715 a year and the cuts are equivalent to a cut of 3p in the price of diesel for the haulage industry," he told the Commons. However some operators who already qualify for rebates through a Reduced Pollution Certificate say they will be no better Current tax bands will be replaced with just seven ranging from 2165 to £1,850. If implemented, a triaxle tractor unit (pulling a triaxle trailer) at 38 tonnes would fall from pre-statement rate of £3,950 to £1,200.
Hauliers running two-axied tractors at 40 tonnes will see the largest savings as their VED drops to just E1,850.
Reaction to the budget was predictably mixed. Road Haulage Association chef executive Roger King says: "If it all adds up to 8p/litre reduction in fuel we would still have preferred to have seen that 8p reduction. It's certainly not everything we warted, but it's a start."
Hauliers have until 12 January to reply to the consultation exercise.
P For a copy of the VED consultation document, contact the DVLA en 01792 788198 or see www.dvla.gov.uk.
W See page 6 for exclusive interview with Transport Minister Lord Macdonald.
III See letters on page 18 for reactions to the pre-budget statement,