Hauliers call for rural fuel duty cut proposals to go further

Commercial Motor
January 17, 2011

The government has confirmed it is considering reducing fuel duties for outlying areas of the UK, but has not announced exactly how and when the policy would be introduced.

Chief secretary to the Treasury Danny Alexander told the BBC: "We are taking steps - and we are the first government to do so - to put in place a fuel duty discount scheme for remote communities."

However, a Treasury spokesman says there is no set timetable as to when the policy, which was first mooted by the government in July, might be in place. "It's not something that is going to come in overnight," he says.

The government is looking at a pilot scheme that would deliver a maximum of 5p per litre in duty discount in the Inner and Outer Hebrides, the Northern Isles and the Isles of Scilly. It is in informal discussions with the European Commission as any scheme would have to be consistent with EU rules on state aid and gain unanimous Member State approval. The Treasury was unable to say whether it would be rolled out to other UK regions.

Hauliers have welcomed the idea but many believe it does not go far enough. Russell Matthews, director of Matthews International Transport of Great Yarmouth, Norfolk, says it would bring the UK into line with countries such as France.

"From our point of view it's a brilliant idea - any help we can get is welcome. We want to be on a level playing field with overseas hauliers which at the moment we're not," he says.

Colin Cowan, owner of TF Cowan & Son of Hexham, Northumberland adds: "It would definitely help. We need something to be done about fuel because it's crippling."

However, more radical action is needed according to Jim Duncan, owner of Bee-Jay Transport of Aberdeen. "We need rates set by government - it happens for taxis so why not for haulage," he says.

*The Scottish National Party has called for fuel taxes to be devolved to the Scottish Parliament if the Coalition fails to introduce a fuel duty stabiliser.

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