CHANCELLOR'S TARGET
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"I was interested to read in some newspapers of some suggestions for new 'environmentally friendly' policies the Government should be undertaking. The range of suggestions included increasing taxes on heavy goods vehicles—all of these ideas are ones that we are already working on."
fever there was a broad hint on what's likely to happen in the forthcoming Budget, there it was, tucked away in Transport Secretary John MacGregor's speech at the AA Motoring Awards lunch last week.
MacGregor wouldn't be drawn further than to say: "You will understand that I cannot say much about taxation—of goods vehicles or anything else at a time when the Chancellor is preparing his Budget."
Well of course not. The last thing we'd expect from Tory ministers is the floating of ideas to gauge public reaction, That would almost be tantamount to selective leaking by the Government in order to market test unpopular legislation.
That would never do.
Of course the Right Hon Secretary of State for Transport doesn't need to elaborate. The message is there for all to see. It's official, the DOT is looking at increasing VED for trucks. But why? Maybe the move is designed to appease all those environmental pressure groups which insist that commercial vehicles don't pay their way on track costs. The fact that they do, and many times over, doesn't seem to bother them—or the DOT— when it comes to setting VED rates.
For those that like to see a conspiracy in everything there might be a hidden agenda operating here. Increased vehicle taxation could ease the Government's conscience in order to pave the way to higher lorry weights; like 40 tonnes before the agreed 1999 deadline perhaps? Who knows, they could even be thinking of allowing 44-tanners on general haulage before the end of the century. Pigs might sprout aerodynamic protuburances and escape the bonds of gravity.
The most likely reason is that the Treasury needs to generate as much money as possible to cover the Government's embarrassment on Public Spending. And road hauliers are very good "soft" targets when it comes to slapping on an extra percentage on vehicle excise duty. They've got this industry over a barrel all right.
Whatever happens on 30 November the pain must be equally distributed. Why should the operators of 400,000 goods vehicles carry the environmental burden of 20 million car drivers? And the Chancellor should remember that a hike in VED may well bring in revenue—but if it ends up tipping hauliers over the financial precipice then it will be self-defeating.
One thing is for sure. No one's going to lower VED. As Benjamin Franklin noted: "In this world nothing is certain but death and taxes." In road haulage the two are inseparable.