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Brown delays diesel duty hike but that's all he has to offer
Page 8
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Gordon Brown offered a crumb of comfort for UK truck operators in last week's pre-Budget report... but only a crumb. Jennifer Bail finds out what's on offer.
CHANCELLOR Gordon Brown has given operators a slight reprieve by freezing his delayed 1.92pflit increase in fuel duty for a further 12 months in response to the current high price of fuel.
But there were few other benefits for the haulage industry in his pre-Budget report with no mention of a cut in vehicle excise duty, no incentives for the early uptake of Euro-3 and 4 trucks and no funding for driver training.
There were also no benefits for sulphur-free fuels — but Brown will cut duty on bioethanol by 20p/lit from 1 January 2005.
The Freight Transport Association has welcomed the freeze. Chief executive Richard Turner says: "In view of the current high level of world oil prices this decision is sensible and welcome.
Diesel contributes up to 30% of the operating costs of many trucks; a further increase on the total cost of diesel would have presented enormous problems for operators."
RHA chief executive Roger King echoes his comments, but adds: "But the story doesn't end here. It is now more essential than ever that road freight transport sees no further increases between now and the introduction of the lorry road user charge in 2008."
Simon Coniston from Wolverhampton-based Coulston Freight says is disappointed by Brown's plans: "There's nothing for me to smile about.We simply cannot compete with foreign hauliers who can do the job for half the cost we can."
Brown also announced that the government is assessing the tenders for the Lorry Road User Charging. It expects to have a shortlist of bidders early in the new year and will soon be releasing a discussion paper, which will consider various details of how the charge might operate in practice.