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Brief hiatus in fuel tax rises
Page 6
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The fuel duty increase is on hold — until November, at least. Jennifer Ball and David Craik report.
THE CHANCELLOR has postponed his controversial 1 September fuel duty increase following pressure from the trade associations and fuel protesters who threatened to take to the streets again. However, this has been attacked as a short-term solution that threatens to cripple many transport companies.
The 1.9p/lit increase will remain "under review" until Gordon Brown's pre-Budget report in November after the Organisation of Petroleum Exporting Coun tries's (OPEC's) next meeting. The delay will cost the Treasury an estimated £125m.
He backed down just hours before the Road Haulage Asso ciation converged on Westminster where chief executive Roger King delivered a letter to the Chancel lor acknowledging the freeze but highlighting the fact that UK hauliers pay far higher levels of fuel duty than their EU counterparts.
King then went next door to Number 10 where he left PM Tony Blair a giant key with the message: "If YOU can do better, be our guest!"
-Of course we welcome the fact that the Chancellor has seen sense at this crucial time," says King. "But we must remember that this is a short-term fix.The fact remains that the Chancellor intends to review his decision in November. It is up to the haulage industry to make sure that we achieve a longer term solution to the problem."
RHA regional director for Scotland and Northern Ireland Phil Flanders adds: "The government has moved the rise back three months but we want them to move it back again and again."
Operators are equally cautious about the Chancellor's move. Dave Yarwood from Oswestrybased Greyroads, who joined the protest in London.wants that high fuel tax is crippling business.
He believes the Chancellor has merely adjourned the increase in duty and says:"'The industry won't accept this. I think it is inevitable that we will see industrial action after the Budget.
Andy Boyle, MD of ABE Transport (Ledbury). says: -This is an attempt to knock the wind out of our sails for a few months. Delaying the rise won't make much difference. It should be scrapped."
However, Freight Transport Association, chief executive Richard Turner welcomes the Chancellor's move: "The last thing the UK economy needs this summer is interruptions to the supply chain."