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COMMENT

19th March 1998, Page 7
19th March 1998
Page 7
Page 7, 19th March 1998 — COMMENT
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Which of the following most accurately describes the problem?

PRUDENT, MR BROWN?

The Concise Oxford Dictionary defines "prudent" as: "Careful to avoid undesired circumstances". So what do we make of a Budget that's "radical.. but prudent"? If Chancellor Gordon Brown's aim was to major on the prudent (there's that word again), he clearly hasn't considered all the "undesired circumstances" that some of his measures will have on road hauliers. Puffing up diesel duty will drive up operating costs in an industry where margins are already squeezed and where fuel supplement increases are rarely, if ever, achieved in full. We certainly support a scheme that rewards cars with the cleanest emissions (and smallest engines) by cuffing their VED by 250—but why not include commercial vehicles? If you want operators to buy green trucks, tangible VED reductions are the best carrot. Like Halley's Comet, the muchtrumpeted 2500 for "Green" trucks and buses made a dubious return in Mr Brown's speech. But without knowing the rules for these concessions we're none the wiser. Freezing the duty on gas and enhancing low-sulphur fuel rates will make them marginally more attractive— f but where's the help on infrastructure? And what will a 23 rise in Landfill Tax do for tipper operators (or fly tipping for that matter)? At least the Government appears to understand what really bogs down hauliers, and especially small hauliers— red tape and regulations. Moves to revise Corporation Tax and National Insurance should help reduce both their fiscal and administrative burden. But the Government must deliver what it promises—and that, Mr Brown, includes the really radical, as well as the clearly prudent.

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