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ip a mile Budget

9th April 1976, Page 4
9th April 1976
Page 4
Page 4, 9th April 1976 — ip a mile Budget
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Which of the following most accurately describes the problem?

THE heavy sector of the road transport industry will carry the heaviest burden from Mr Healey's low-key Budget. The 71p increase on a gallon of diesel will have the effect of adding ip a mile or more to the operating costs of most 32-ton vehicles where the performance is around 7mpg.

What it means in hard cash terms is that operators will pay £75 a thousand gallons more when they take delivery of diesel from today (Friday).

The reduction in VAT on petrol from 25 per cent to 121 per cent taken together with the 71p a gallon increase means that there will be a net increase on petrol of lp per gallon. For a van of 5cwt carrying capacity that means 0.03p a mile more.

A van with a 2-ton carrying capacity normally giving Ifimpg will cost 0.06p a mile more.

Early reaction to the Chancellor's proposals despite the fact that he had not increased the vehicle excise tax were of complete dismay.