Fuel duty increase – lorry operators protest to Treasury

In a joint declaration delivered to the Chancellor of the Exchequer today (Friday 28 September) the Freight Transport Association (FTA) and the Road Haulage Association (RHA) have called on the Government to freeze its plans to increase fuel duty by 2p per litre on Monday (1 October) and to introduce a fuel rebate scheme for operators of essential commercial vehicles.

FTA and RHA say that Monday’s increase will further extend the problems being experienced by the domestic road transport industry in the face of competition from the ever larger number of foreign lorries operating in the UK on cheap continental fuel. At a time when the world price of oil is itself almost at a record $80 a barrel, from Monday duty on diesel in the UK will be 50.35p per litre compared with an average for the rest of Europe of just 22.7p per litre.

The FTA and RHA declaration calls on the Chancellor to take four actions:

Postpone the fuel duty increase proposed for 1 October while high world oil prices persist

Introduce a fuel duty rebate mechanism for hauliers and other essential vehicle operators to bring UK fuel burdens into line with the European average

Introduce a UK vignette or similar to assist in compiling a database of the identity, ownership and compliance record of all foreign-registered goods vehicles entering the UK to allow effective enforcement of UK driving regulations and vehicle safety standards on visiting vehicles

Develop a mechanism to allow separate fuel duty rates to be set for goods vehicles and other road users to reflect:

the vital role played by road haulage and freight transport in the functioning and delivery of the UK economy

the intensive competition pressures from foreign operators on parts of the road haulage sector

the need for investment in new vehicles and technology to maintain high safety standards and reduce the carbon footprint of road transport

The joint declaration was signed on behalf of FTA by President Andrew Haines and Chief Executive Theo de Pencier, and on behalf of RHA by Chairman Willie Oliver and Chief Executive Roger King.