Exchequer secretary to the Treasury Angela Eagle has written to MT editor Justin Stanton ahead of the Budget (12 March) re-stating the government’s position on fuel duty. A month ago Stanton used the FTA’s ready-to-send email message, which detailed concerns about the impact the planned 2p/litre hike in duty would have on the competitiveness of the UK supply chain and the disparity with fuel duty and prices in the rest of Europe. His email was received by his MP, who then passed it on to Eagle. She has now replied.
In her letter, Eagle states: "The government set out its policy on fuel duty in the last Budget, based on the UK seeking to reduce polluting emissions and fund public services. While we recognise Mr Stanton’s concerns, it is important to realise that by 2010 the main fuel duty rates will remain 11% lower in real terms than they were in 1999. "The duty changes announced through to 2009-10 are expected to result in savings of 700,000 tonnes of CO2 a year by 2010-11."
She goes on to say the freight industry remains "an essential component of the UK economy" and expects the industry to pass on the costs of the increase - without acknowledging the volatility of fuel prices and the impact on UK plc of the ever-increasing cost of transport. She also states: "The government believes that higher fuel prices also reflect the cost of carbon, and assist the efficient operation of the economy by making investment in fuel abatement techniques and technologies more cost-effective."
Stanton says: "We’re just days away from the Budget and the level of intransigence apparent in this letter is worrying. There is no sign of any softening in the government’s stance. The government is clearly guilty of green-washing and is either unaware or deliberately ignoring the paradox of its own policies. Best guess, there’ll be no good news in the Budget: the 2p/litre increase in fuel duty will be neither scrapped nor deferred."
- Come back to Roadtransport.com on Wednesday afternoon for the latest on the Budget’s impact on the transport industry.