We received a petition asking:
“We the undersigned petition the Prime Minister to give Support And Offer Protection To The Haulage Industry From High And Rising Fuel Prices.”
Details of Petition:
“Withdraw the 2ppl duty increase October 2008, de-couple essential commercial users from domestic users and implement an essential user rebate for the industry.”
· Read the petition
· Petitions homepage
Read the Government’s response
The Government is sympathetic to the road haulage industry’s concerns over the cost of fuel as a result of high oil prices. Of course, the impact of the rise in world oil prices is being felt by not just the road haulage industry, but by many businesses and families, and we continue to work at international level to improve the efficiency and effectiveness of global commodity markets. But rising domestic fuel prices are being driven by changes in the international price of crude oil, and not fuel duty rates, which are 17 per cent lower in real terms than in 1999.
However, the Chancellor has decided to postpone the 2 pence per litre increase in fuel duty that was expected to take place on 1 October 2008. As the Chancellor has said, the global credit crunch and sharp rises in world oil prices have pushed up prices at the pump. The decision will help motorists and businesses get through what is a difficult time for everyone.
Regarding an essential user rebate for hauliers, it is fair to say that requests for reduced duty rates for operators are often associated with the relative competitiveness of the industry compared with foreign operators.
However, the Haulage Industry Task Group looked at the overall operating costs faced by UK and EU hauliers, and found that within cost differentials, the fuel tax differential is in many cases offset by lower labour taxes and other employer costs in the UK. There is also consideration to be given to compliance and fraud issues, set up and administration costs, and the environmental impact of such a policy.
The Government continues to support the road haulage industry through other measures. These include freezing lorry Vehicle Excise Duty rates since 2001, an extension to the reduced pollution certificate scheme and substantial increases to enforcement spending, tackling those who do not comply with road safety law. Indeed, on the 8 April this year the Department for Transport announced an additional £24.3 million on enforcement spending, targeting those on international trips. This represents a 50% increase in the number of HGV checks that will be carried out, as well as allowing the Vehicle and Operator Services Agency to open two new enforcement sites, on the M6 and in North Wales.
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