Budget box could contain fuel duty relief
February 1st 2011 All eyes are looking to the Chancellor’s budget on March 23 for confirmation that the proposed 1p rise, above inflation, in fuel duty due to come into force in April will be delayed.
Chancellor George Osborne hinted that the measure could be reviewed during a January radio interview. Speaking during a visit to the West Midlands, Osborne told BBC WM radio that he could do “something about it” in the budget, adding “we can override it, we are looking at that.”
The hopeful sign from the Chancellor was welcomed by the Road Haulage Association and the Freight Transport Association.
“This is very encouraging news,” said RHA chief executive Geoff Dunning. “It proves beyond doubt that the noise we have been making on this issue has not fallen on deaf ears.
“However, a duty freeze in April can only be regarded as a short term fix. If we are to stand any chance of long term growth it is essential that we see a long term solution to this problem.”
FTA chief executive Theo de Pencier added: “We welcome Mr Osborne’s public support for scrapping the fuel duty rise but we want more than just warm words.We look forward to seeing the small print.”
While cutting taxation is in the tradition of the Conservative Party, the Government is loathe to cut taxes at a time when raising cash to pay off the deficit is paramount. Nevertheless, the Chancellor may feel such a cut is necessary to help the beleaguered transport industry.
The FairFuelUK campaign has garnered significant support thus far. The movement, supported by the RHA and FTA, seeks a fair fuel stabiliser as well as the proposed April fuel duty rise to be scrapped. MPs Philip Davies (Conservative), Stephen Lloyd (Lib Dem), Nick Smith (Labour) and Alan Reid (Scottish Liberal Democrat) are among those who have signed up in support of the campaign. Davies said: “The high price of fuel is crippling not only hauliers, but the general motorist.
“We’re trying to bring about some pressure on the government to reduce the duty on fuel.
“I hope George Osborne is listening to the concerns people are expressing; given that two thirds of the cost of a litre of fuel is tax, the onus is on him to reduce duty.” More articles from Handling & Storage Solutions: | 
