UK fuel duty increase reprieve
November 30, 2011
The Freight Transport Association (FTA) and its partners in the FairFuel UK campaign, were yesterday celebrating after the government Autumn Statement included news that January’s 3p per litre fuel duty hike had been cancelled.
The FTA also welcomed the Chancellor’s decision to inject new money into transport infrastructure via road widening schemes for some of industry’s key trade routes.
Commenting on the fuel duty reprieve, FTA CEO Theo de Pencier said: “We have avoided a horrendous new year hangover – January’s rise would have cost the industry around £325 million.
“But while we are relieved that the Chancellor has steered us out of immediate danger, it is obvious that getting the UK back on the road to recovery requires a long-term fuel duty strategy, and one which doesn’t make tough times that much tougher for businesses in an already uncertain economy.
“Today’s decision will help to keep the wheels of industry turning and shows that government has listened.
“However, the Chancellor has not been bold enough. He should have ruled out the planned 3p per litre duty rise planned for August 2012, as, if world oil prices remain high and above $100 per barrel, it will still hit industry hard.”
The road widening schemes are planned for sections of the network where delays are endemic, leaving industry to foot the bill for wasted time, extra fuel and missed delivery slots.
Simon Chapman, the FTA’s Chief Economist, said: “The cost of congestion for businesses and motorists exceeds £20 billion each year. This is money thrown down the drain, and a brake on growth that the economy can ill-afford.
"Targeted widening of the motorway and trunk road network, and adding more capacity at bottlenecks offers a very strong rate of return, of between £3 and £13 for every £1 invested. Plans to upgrade sections of industry trade routes on the A14 and the A453, and, tackle congestion blackspots on key junctions of the M25 and M1 are welcome news.
“However, increasing the long-term capacity of routes such as the A14 between the east coast ports and the Midlands, and the M4 in South Wales remain in the balance. Congestion on these routes will not go away by government announcing studies.”
Courtesy of IFW
