News

The Freight Transport Association (FTA) is considering taking the unprecedented step of withdrawing co-operation with the Treasury over the latter's refusal to commit to decoupling truck fuel taxes from those paid by the general public.

Last week (15 September) FTA chief executive Theo de Pencier and head of policy James Hookham met with Angela Eagle, exchequer secretary  to the Treasury, and were so disappointed with the lack of progress on the issue that they are now considering whether to pull the plug on further talks.

In an internal FTA memo, Hookham says: "We told her [Eagle] that unless she commits to the development of a mechanism to allow lower fuel duty rates for diesel in CVs, the FTA would recommend to its members that it walks away from routine negotiation with the Treasury."

Hookham adds: "I'm not prepared for this to disappear into a continuous spiral of technical debate with the Treasury."

The FTA says that any decision would not be taken lightly, but it is borne out of a sense of real frustration with the government. An FTA spokesman adds: "Action was promised by the Prime Minister when he was Chancellor in 2000, yet eight years later nothing has happened."