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FTA calls for action on fuel duty rate hike

06 February 2008

The Freight Transport Association (FTA) has launched a wide-ranging campaign in a bid to get the government to act over the ongoing issue of the UK's high rate of fuel duty. Its initial aim is to get chancellor Alistair Darling to abandon, or postpone, the 2p/litre rise in fuel duty planned for April, at an estimated cost to the government of £1bn. However, its ultimate goal is to persuade the government that its taxation policy is harming the UK's haulage industry and that the only way to solve  this is through decoupling car and truck fuel tax.

FTA director of policy James Hookham says that its policy of continued dialogue with the government is the only way forward. "Direct action causes, and did cause, pain and economic loss for the majority of our members. "As recently as 6 November, our national council resolved that this was not an option for the FTA to pursue. We have to provide leadership for those that don't support direct action but are frustrated by the government's tax policies."

The FTA's strategy consists of four strands: a meeting with the chancellor and Treasury secretary Angela Eagles on 11 February two pieces of research - one on UK hauliers' costs relative to their foreign competitors and the other by accountancy firm Pricewater-houseCoopers examining the potential strategies for decoupling truck and car fuel taxes and a letter-writing campaign. It also has another two demands of the government: to introduce a vignette for foreign trucks and  give UK hauliers a fuel duty rebate. However, Hookham acknowledges: "Decoupling remains the answer to the problem otherwise we are going to keep having this argument every year because the government wants to keep inflating fuel duty."

Hookham admits that some FTA members benefit from the situation as cabotage provides a source of cheap transport. "We would be happy to let the market take its course, but that differential is largely driven by government tax policy - the Treasury is handing foreign competitors an unfair advantage," he says. The Road Haulage Association, the National Farmers Union and the British Chambers of Commerce will also be involved in keeping pressure on the government on this issue. The FTA is calling on operators to lobby their MP over the issue of high fuel taxes. Go to www.fta.co.uk/fuelduty for more details.


Dominic Perry
Email at dominic.perry@rbi.co.uk
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