Chancellor could have done much better, says transport industry 20 March 2014

'Could have done better', appears to be the transport industry's verdict on yesterday's (19 March 2014) budget. While it may have been for doers, makers and savers, as the Chancellor put it, there wasn't much joy for hard-pressed transport operators.

The FTA (Freight Transport Association), while welcoming the freeze in fuel duty, expressed disappointment that George Osborne had "not taken the opportunity to boost the economy by reducing fuel duty by 3 pence per litre".

"The Chancellor has kept his promise to freeze fuel duty, and industry will be £187 million a year better off for that," comments James Hookham, FTA managing director of policy and communications.

"But he missed the opportunity to stimulate the economy further by reducing fuel duty and putting around £690 million into the pockets of families and British business," he continues.

"This could have given a further stimulus to the economy and locked in the positive growth already achieved," he says, explaining that, as part of its pre-budget submission, FTA had asked the Chancellor to consider the economic benefits that could be delivered by further development of the government's approach to fuel duty.

FTA estimates that every penny of fuel duty costs commercial vehicle operators £116 million a year, so a 3ppl cut would have saved £350 million a year for an industry that all British businesses rely upon.

Meanwhile, FairFuelUK campaigner Quentin Willson also describes the budget as a lost opportunity. "Cutting tax on beer and bingo and not on fuel duty shows how really out of touch this government is," he argues.

And Howard Cox, founder of FairFuelUK, comments: "Huge disappointment in the Chancellor's budget. It seems the Treasury is in total denial. We have presented conclusive proof that cutting fuel duty will generate jobs, increase GDP and lower inflation."

And he adds: "Mr Osborne even said in his budget speech that punitive taxation is wrong. Well what's more punitive than taking 60% in tax from 32 million road users? We have rammed the evidence into every part of Westminster. The Chancellor simply does not get it."

As for the RHA (Road Haulage Association), chief executive Geoff Dunning comments: "While proving positive for the manufacturing and export sectors, today's budget brought little encouragement for UK hauliers.

"Of course we welcome the introduction of legislation to give new tax and borrowing powers to the Welsh government to fund improvement to the M4 in South Wales. We also welcome the news that business rates, discounts and enhanced capital allowances will be extended in enterprise zones for another three years," he says.

"However, for the UK haulier, currently paying the highest level of fuel duty in Europe, there was scant encouragement. We were buoyed up at the pre-budget announcement that the Chancellor had some surprises up his sleeve. Sadly, they did not include a cut in fuel duty – the thing that our industry so desperately needs."

Author
Brian Tinham

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