Government initiatives designed to "support UK hauliers" are too little, too late in light of the impact of the latest fuel duty hike, say industry bodies. To show "continuing support for the UK haulage industry", Chancellor Alistair Darling this week announced that vehicle excise duty (VED) will be frozen for 2008-09, which the Treasury says will make VED 21% lower in real terms in 2009 than in 2001.
Also packaged in the conveniently timed announcements is the Department for Transport's (DfT) planned £2m investment into VOSA to support its enforcement activities, particularly against hauliers on international journeys. The DfT confirms this is "new money" factored into VOSA's 2008-09 budget, saying it will be funded by the introduction of VOSA powers to collect on-the-spot penalties from drivers without a valid British address.
It also pledged to publish a progress report alongside November's pre-budget report looking at ways to deliver more targeted enforcement on foreign vehicles, including the "strong" consideration of a vignette charging foreign hauliers for using UK roads. But while welcoming the announcements, the Freight Transport Association (FTA) and Road Haulage Association (RHA) have blasted the idea that they soften the blow of fuel duty rises.
FTA director of external affairs Geoff Dossetter says: "None of that in our view compensates for the fact that the industry has been hit with a bill of £130m a year in fuel duty. As compensation it is a lamentable failure." RHA policy director Jack Semple says the plans are not enough when set against record fuel prices.