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Budget will include crackdown on red diesel fraud
Page 11
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A crackdown on the fraudulent use of red diesel is another of the measures announced last week by Gordon Brown—a move that has been welcomed by both of the leading trade associations.
In his pre-Budget statement, the Chancellor reports that in 2000 lost diesel revenue totalled about £450m, or 4% of the market—a figure that is expected to rise if decisive action is not taken. This action is likely to include an increase in the number of intelligence-led checks and investigations: tougher penalties for those caught; and a publicity campaign designed to highlight the danger of fuel misuse and the resulting penalties.
The Freight Transport Association's chief executive, Richard Turner, says: 'This is becoming a very serious problem for the legitimate industry Illegal use of this fuel by lorry unsustainable business environment for the majority of lorry companies."
While the Road Haulage Association also welcomes the government's promise to tackle the issue of red diesel, it is disappointed that no reference to fuel duty was made in the pre-Budget statement, and that the subject of compensation for livestock hauliers was not addressed.
Other subjects mooted in the Chancellor's pre-budget report include: • A package of measures to support enterprise and encour age growth among small business, improving access to finance, reducing the burden of VAT on small companies and publishing an independent review of payroll administration; • A system of enhanced capital allowances designed to encourage investment in a range of environmental objectives that include cleaner fuels and vehicles; • A publication document on Powering Future Road Vehicles to encourage low-carbon vehicles and fuels; • Fuel duty exemptions for pilot projects involving hydrogen, biogas and methanol as road transport fuels.