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Budget: 'Fuel increase needs a permanent delay'

FTA external affairs director Geoff Dossetter
FTA external affairs director Geoff Dossetter

NEWS that an increase on fuel duty has been delayed for six months has produced mixed reactions from the haulage industry.

The Freight Transport Association said it was pleased Chancellor Alistair Darling had made the “commonsense decision” to defer a planned 2p per litre increase in fuel duty until 1 October, but said a new fight was just beginning.

External Affairs Director Geoff Dossetter said: “Bearing in mind the enormous increase in the price of oil over the last two years, and UK transport has had to pay an extra £2.5 billion in fuel bills since last January, the campaign to defer the October 1 (increase) begins today.

“The price of diesel impacts on every company and every individual in the country - if you've got it, then it has been on the back of a lorry. That lorry is fuelled by diesel.”

Mr Dossetter said the long term solution to industry's fuel tax problems was have separate legislation for the way fuel duty is charged on commercial vehicles and cars.

He added: “It is daft that the same system of taxation applies to a micro car paying less than £1000 on fuel each year and to a 40 tonne lorry paying over £35,000.

“FTA will continue to campaign for such a new system.”

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