How transport reacted to the Budget
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AN INCREASE in road fund licence of one-third for the larger commercial vehicle and a minimum duty of £40 for the smaller types announced by Mr Denis Healey in last week's Budget speech was the only one of the major measures to affect the road haulage industry directly.
Among other announced measures likely to influence road haulage during the coming months were the allocation of an extra £20 million this year and £30 million next for training purposes, suggesting that the Road Transport Industry Training Board might benefit, and a reduction of some £480 million in nationalised industry subsidies, suggesting that the National Freight Corporation and the National Bus Company will not.
Although the increase in road tax involves an extra £153 a year for a vehicle with an unladen weight of 10 tons, this becomes less disconcerting When related to extra costs per mile. The vehicles to Which it refers are generally trunking vehicles operating fairly high annual mileages, and at 50,000 miles a year the extra cost per mile becomes 0.31p; higher annual mileage will reduce this proportionately. T h e Freight Transport Association has pointed out that the increase will cost industry over £500m a year this, together with other increases in operating costs, will be certain both to increase the cost of exports and to impose a further drain on the housewife's purse.
The Road Haulage Association says it is pleased at the eventual success of its representations that the investment allowance provisions in the Price Code should be increased and that they should apply to commercial vehicles.
On the other hand, says the Association, it is disappointed at the increase in excise duties on these vehicles, which means that operators will continue to an even greater degree to pay sums in excess of track costs.
The additional duty would cause an increase of approximately 11/2 per cent in operating costs. With the present monthly rises in other items of operating costs, it would be necessary for hauliers to increase their rates in the near future.
The hackney carriage rate of duty on which bus road tax is calculated is advanced to £20 for the first 20 seats and the additional tax per seat is 50p.