Gloomy forecasts
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As CM went to press on Tuesday, government sources were suggesting the Budget Statement would contain concessions for hauliers including VED cuts of around fL000 a vehicle, the introduction of a Brit Disc scheme and the freezing of fuel duty.
All good news, if true, but all still woefully inadequate. A Brit Disc scheme might go some way to redressing the competitive slant, but exactly how far would depend on the rate at which it was set; and we can't pretend for a moment this would be anything like enough to make up for the annual cost of UK fuel taxes.
VED cuts of iL000 per vehide, likewise, would be welcome but essentially ineffective. As one prominent haulier told us earlier in the week: "Brown could take VED away altogether and it would still leave British hauliers struggling."
Why? Because the key issue is fuel duty, and on this score it seems there will be no cut and no rebate. A freeze on duty would make a small difference, but will still leave us paying around £300 more for a L000 litre tank than our European counterparts on every single fill— today, tomorrow, next week, next month. Makes iL000 off VED look a bit limp, doesn't it?
So, even if all the predictions are correct, Brown will have done nothing effective to level the playing field, merely nibbling away at the corners of the problem with a package of concessionary measures without truly delivering.
The key issue is still the effect of high fuel duty on UK hauliers' ability to compete and survive, as Brown well knows. So whatever action follows Wednesday's statement, Brown has only himself to thank.