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Staggered business rate hike embraced
Page 14
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THE ROAD haulage industry has welcomed the decision to stagger the proposed increase in business rates, but says rises in fuel duty and testing fees cancel out any real benefit.
Last week (31 March), Chancellor Alistair Darling said he would gradually phase in a 5% increase in business rates, introducing 2% from 1 April and a further 3% over the next two years.
However, Freight Transport Association
(FTA) director of communications Jo Tanner says for road freight businesses, fuel duty hikes and the increase in VOSA fees will more than cancel out benefits from the staggered business rates rise.
'Anything that helps business helps our members, but it is a double-edged sword because of the rise in fuel duty and fees for VOSA. The government are giving with one hand and taking away with the other."
Meanwhile, the recession has been creating additional problems for road haulage firms that also own warehouses, on which empty property rates were introduced a year ago.
Tanner says: "A lot of [our members who own warehouses] say it is cheaper to tear them down than to keep them standing."