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20/02/2012
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The Freight Transport Association (FTA) has called on the Chancellor to cut fuel duty by at least five pence per litre and to scrap the increase planned for August.
 In its pre-budget submission to the Treasury, the trade body argues that such action could save consumers and businesses £3.6 billion and prove to be a vital shot in the arm for the UK's economy.
Following sustained lobbying by FTA and its partners in the Fair Fuel UK campaign, the last budget saw two planned increases in fuel duty deferred and an unprecedented cut in fuel duty of 1ppl – a move that saved businesses some £500 million.
However, despite this success, the price of diesel increased by 7ppl in 2011, adding £3,284 to the annual operating cost of a typical 44 tonne articulated vehicle.
"Never mind quantitative easing, cutting the still-disproportionately high amount we spend on diesel, which is, after all, a business essential, would be a simple and effective way to stimulate the economy," insists James Hookham, FTA's managing director of policy and communications.
"The billions that industry and consumers will save over a year would be invested elsewhere in the economy, giving the impetus to growth that is so badly needed," he continues.
"George Osborne gave industry a lifeline in the last budget, but with the economy still in the doldrums and a new round of duty rises looming, we are asking the Chancellor to extend this logic further for the sake of businesses, consumers and UK plc."
Hookham is also urging UK government to step up to the plate and match the transport industry's own efforts, in terms of carbon reduction.
"Logistics is helping to decarbonise the economy: members of FTA's voluntary Logistics Carbon Reduction Scheme are on track to meet their self-imposed eight per cent greenhouse gas reduction target by 2015," he states.
"But much more could be achieved with greater government support. For example, biomethane from landfill sites could be a real option for articulated truck operators – but uncertainty over duty rates on natural gas and biomethane is a bar to investment."
Hookham also raises the thorny issues of the uneven playing field that still exists between domestic and foreign hauliers – which FTA believes could be resolved by introducing a time-based lorry road user charge or UK Vignette.
"It is only right that foreign lorries pay for their use of UK roads," urges Hookham. "But the industry's support for a UK vignette will be entirely contingent on how the Department for Transport can ensure that it does not impose additional costs on domestic hauliers.
"The only solution, as far we can see, is through a rebate on VED. The Chancellor needs to confirm this is what will happen in his budget statement. Until a workable rebate mechanism is confirmed by government, I expect our members' reception for a UK vignette will be only lukewarm."
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Author
Brian Tinham
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