RHA warns Gordon Brown: "Don't Raise Fuel Tax!"

The Road Haulage Association has warned Chancellor Gordon Brown that any Budget increase in fuel tax will cost British jobs. It will do further damage to an industry that is already paying much the highest level of fuel tax in Europe.

The handicap faced by British firms is highlighted this week by a new proposal from the European Commission. Brussels wants to raise the minimum diesel tax rate to €380/1,000 litres (or 38 eurocents per litre) by 2014. The tax rate in the UK is £483.5/1,000 litres, equivalent to 70 eurocents per litre.

“ALREADY, the tax in the UK is almost twice that of the EU minimum rate proposed for 2014. It is more than twice what many EU countries charge today. This is a measure of the problems faced by many British hauliers as they try to compete with foreign trucks," says RHA Director of Policy Jack Semple.

"Operators come into the UK with large fuel tanks and pay NOTHING to use our roads. In addition, our closest competitors – Netherlands, Belgium and France – all give hauliers an essential user discount or rebate on fuel tax. This helps hauliers from these countries to take work from firms which have no choice but to buy their diesel in the UK."

“Chancellor Gordon Brown recognized this as a major problem six years ago and promised to level the fuel duty playing field. Operators in Holland, Belgium and France are all given help to cover of the cost of fuel - while we, with the highest fuel duty of ANY country still wait for the UK government to give UK British hauliers the same consideration", he concluded.