Yesterday Chancellor Alistair Darling has decided that the government would opt to keep the escalator in fuel duty, despite the haulage industry describing the devastating effects this increase has already done in the UK.
According to the Chancellor’s pre-Budget report, the fuel duty rise next April will be the fourth since last December, during which time the duty has risen by 16 per cent in as many months.
The Road Haulage Association (RHA) has expressed strong disappointment with Mr. Darling’s decision.
RHA Chief Executive Geoff Dunning said: “This has been a stunning series of increases in the depth of a recession. Duty amounts to a 25% tax on the operation of this essential service and will drive up transport costs for UK industry and retailers, reducing UK competitiveness and increasing prices for the general public.”
The Freight Transport Association (FTA) also joined the RHA in calling on the government to stop the planned increase in fuel duty but to no avail.
FTA chief economist Simon Chapman claimed that the government’s positioning of the increase in fuel duty as a “green tax” is nothing more than a “revenue raising tool” in an industry with “relatively inelastic demand.”
We believe this planned increase in fuel duty will have a strong effect on couriers on Shiply so we are very interested to know about your opinions.