Conservative proposals could level freight haulage playing field
Date: 17 August 2007
Proposals by the Conservative party could help to level the playing field in the freight haulage industry.
The Tories have proposed to charge all lorries working on UK roads a distance tax, while giving UK vehicles a cut in fuel duty or Vehicle Excise Duty. This would mean that foreign lorries were taxed more, helping to restore fair competition between UK and overseas freight haulage vehicles.
At the present time, foreign trucks from other EU countries have an advantage in that they benefit from far lower diesel taxation than UK logistics firms.
The Freight Transport Association (FTA) has welcomed the Tory plans, but has stressed that the scheme must not be used as a stealth tax designed to fund essential road building. Investment of this type must not rely on increased tax in the road transport sector.
The scheme is attractive "because it would charge foreign lorries for using UK roads and help equalise the enormous difference in operating costs between the UK and the rest of Europe, caused by UK diesel being taxed at 48p per litre against an average for the rest of the EU of just 23p per litre", said FTA external affairs director Geoff Dossetter.
Another levy due to hit haulage firms hard in the coming years is the London low emissions zone, whereby drivers of high-polluting freight haulage vehicles will have to pay a daily charge to enter the capital.
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