
The Chancellor has rejected industry hopes for a reduction in duty for hauliers. But he may allow a “vignette” daily charge on overseas hauliers in the UK. He has also increased fuel duty by 1.25p to 58.35p.
Gordon Brown rejected the proposals from the industry to reduce duty by 25ppl on fuel used by the operators most directly affected by foreign competition. "After carefully considering fully the implications these policies would have on revenue, fraud and the environment, and the analysis of costs and competitive differentials set out in the Task Group report, the Government does not believe that there is a case for duty rate reductions. Quantative restrictions on fuel carried on incoming vehicles where also suggested. However, these would contravene Europe single market
He said that further work is being done to explore ways to driving more targeted enforcement on foreign vehicles. “One way this could have been achieved would be via a Vignette – a time based charge for the use of UK roads. This would be designed to make foreign hauliers pay for some of the damage that they cause on UK roads. If it was introduced it would very likely to be administered through the VED registration process. The Government is undertaking a detailed feasibility study.
The Chancellor published a report from the Road Haulage Industry Task Force summarising the evidence gathered. Gordon Brown said that "The Government recognises the important role that road haulage plays in a successful and high-productivity economy.
The Chancellor said "It is the Government's police that fuel duty rates should rise each year at least in line with inflation as the UK seeks to reduce polluting emissions and funds public services." What is worrying about this comment is that it says at least in line with inflation and opens the possiblity of it being increased to fund public services.
But You can see the full speech and press releases at the HM Treasury's web site once the Chancellor has finished his speech.
You can see the full speech and press releases at the HM Treasury's web site .