Budget Increase in Fuel Duty "Unacceptable" says RHA
The Road Haulage Association has written to the Chancellor condemning the budget proposal to resume increases in fuel duty.
"If you include last November’s increase and all those projected up till April 2009, then we are talking a 7ppl uplift. Or put another way an increase in the average operating cost per HGV that by 2009 will total £4200 per year. Yet we are not aware that other EU countries are engaged in such tax raising activity", said RHA Chief Executive, Roger King.
"If the Chancellor refuses to listen to us perhaps he will pay due regard to his parliamentary colleagues. Yesterday the all party Trade and Industry Committee published its findings on the UK car industry. In it they point out that Britain suffers cost pressures because of cheaper labour in Eastern Europe and because as an island, it has extra transport costs. So why is the government piling these additional fuel duty costs on thus making the UK even more expensive?"
While the Association applauds the Chancellor’s decision to reduce Corporation Tax for larger companies in order for the UK to resume its competitiveness with other EU countries, it suggests that the same position be adopted for commercial diesel prices. "To raise transport costs by 7ppl is unacceptable and dangerous for UK businesses however dressed up as a green initiative," said Roger King. " There has to be a better way and that must start with a rebate for road transport".
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