News

The organisation representing UK industry claims the greater cost of fuel in Britain compared with the rest of Europe has become a "major issue". The Confederation of British Industry (CBI) has called on the government to address what it says are the economic advantages European hauliers have over their UK counterparts.

UK diesel duty is currently almost 30% more expensive than the next highest country, Germany, at 50.35p/litre. A spokesman for the CBI says: "Naturally businesses are very  concerned about the prospect of further rises in fuel costs, but in the current economic climate there are no pain-free alternatives for raising the revenue that would be lost from freezing fuel duty.

"However, we agree that the difference between fuel costs in the UK and the rest of Europe is a major issue for the freight industry - European hauliers entering the UK have a very clear cost advantage." The spokesman says that since the government's Lorry Road User Charge plans were abandoned, there has been "little progress" in addressing the problem. He adds: "We are urging the government to work with the freight industry to find a solution to this un-level playing field."

Meanwhile, the FTA has released its budget submission document setting out the taxation decisions it believes Alistair Darling should announce on 12 March.  Top of the list is a demand to drop the 2p/litre duty rise planned for 1 April. The FTA says tax hikes will force operators to delay vehicle  replacement plans and prevent the take-up of more environmentally-friendly practices.

The organisation wants the government to consider decoupling fuel duty for LGVs from other road users and freeze lorry vehicle excise duty rates for 2009. It also wants to see a vignette system that captures details of foreign hauliers as they enter the country in order to offset fuel duty reductions. An FTA spokesman says: "The Chancellor must recognise the problems of the transport industry, recognise the impact on consumers, and abandon his plan to take even more tax."