RHA Recovery Group says "Give us a break Mr Livingstone"
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"Increase in Fuel Duty puts British Hauliers at Risk," says the Road Haulage Association
Chancellor Gordon Brown MUST take action to rebate road hauliers before the above-inflation, 2 pence per litre increase in diesel duty takes effect on October 1, says the Road Haulage Association.
The UK already has the highest fuel duty in Europe and competition from Continental firms able to buy cheap diesel is undermining UK haulage and costing jobs - this will widen the gap even further.
The impact of unfair competition was again recognised by the Chancellor today, when he said in the Commons that “the government will triple its funding for targeted enforcement against unfair competition from haulier companies from outside the UK”.
"The RHA welcomes this stronger enforcement which starts next month," said RHA Chief Executive Roger King. "We have been pressing hard for action against foreign firms running illegally.
"However, lumping cars and lorries together is no longer an adequate solution to fuel duty. British motorists do not compete with drivers from abroad – British hauliers do. Hauliers must use the 6-month delay to prepare for TWO rate increases; one in October and another next spring when diesel duty goes up by another (above inflation) 2 pence per litre.
The Association welcomes the holding of vehicle excise duty for lorries.
The introduction of a reduced pollution certificate for Euro 5 trucks will be also welcomed by many hauliers. However, it is regrettable that this announcement has been delayed for a year. The implementation in October will create resentment among operators who have bought Euro 4 trucks in the past few months; and we anticipate wholesale cancellations of trucks built to Euro 4 but not yet delivered to customers.
The RHA will be pressing the government urgently to give grants for the up-grading of Euro 4 trucks to Euro 5.
We note the staged increases in capital gains tax for firms with a turnover of less than £2.5 to 20% now and 22% in two years’ time and the intention to re-direct the increase in tax revenue into greater incentives for investment. However, small hauliers might prefer to make their own decision on what to do with profit and it is inconsistent to reduce tax rates for larger firms bit not for smaller companies.
The RHA welcomes the progress towards setting up a vignette scheme to charge foreign hauliers. A feasibility study will be completed in time for the pre-budget statement later this year.
The RHA is concerned that the increase from £160 to £195 in the aggregates levy will put further strain on the road building programme.
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