Fuel duty rise will threaten small hauliers

Mar 6 2008 by Andrew Mernin, The Journal

WITHIN a matter of weeks chancellor Alistair Darling is expected to increase fuel duty by 2p. The increase may not sound like it will impact hugely on drivers’ wallets, but it could be a life-threatening change to small haulage operators in the region.

According to figures from the British Chamber of Commerce, the Government has gained an extra £1.7bn in taxes and VAT from North Sea oil and gas companies as well as £481m through its 2p hike in fuel duty last October.

However, further price increases are expected. And any increase could send shockwaves through the haulage industry.

According to Malcolm Dods, area manager of the Northern Road Haulage Association, a 2p climb in fuel duty on the back of ever-increasing fuel prices will certainly have a negative impact on the haulage industry. He said: “We are against the rise in fuel duty and we have a delegation which is going to have a meeting with Alistair Dowling.

“What we want is an eventual decrease in the amount of duty we pay – fuel price isn’t a problem, the big problem is the Government’s take on the price of duty we pay on fuel. A 2p rise could be the end for some operators, with smaller companies being the worst hit. In the North East we have seen a lot of consolidation over the last 12 months and that’s an indication that people have had enough and just aren’t getting better and are selling up while they still have something to sell.”

Oil price surge: Page 27