RHA: Govt should defer fuel duty increase to help freight forwarders
Date: 16 July 2007
The Road Haulage Association (RHA) has called on the government to defer the proposed two pence per litre increase in fuel duty.
Announced by former chancellor Gordon Brown in his last Budget, the increase would put UK freight forwarders and logistics firms at even more of a competitive disadvantage against foreign firms.
Foreign trucks operating backloads or other loads within Britain are not subject to UK fuel duty and therefore have it easy compared to domestic hauliers.
"We cannot believe that with oil prices back up to last year's record levels that a duty increase makes any sense," said Roger King, the RHA's chief executive.
"Indeed when they were last up at around $78 per barrel the chancellor froze further duty increases. We are asking the current chancellor to emulate the policy of his predecessor who is now, of course prime minister."
He added: "All hauliers have to accommodate the world price of oil but only the UK singles out its own hauliers for punishment by taxation. We hope [new chancellor] Alistair Darling responds positively."
The RHA also found that freight forwarding companies are paying 5.7 per cent more for bulk delivered diesel now than they were at the beginning of this year.
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