The Fuelcard Company - Jakes de Kock
Before the election, David Cameron was standing whole-heartedly in the motorists’ corner, pledging to lower fuel prices, limit road pricing and improve road safety. Now he’s settling into Downing Street after a successful campaign it remains to be seen whether he’ll keep his promises and transform these pledges into policy changes.
Will the new Government deliver for the road haulage sector?
As we come out of the recession, the transport industry is looking to the new coalition Government for support and confirm their understanding of how the level of fuel duty is going to be key to the future survival of many UK companies who operate within the freight and haulage industries. The new Government needs to realise that fuel is not a luxury but a daily necessity for goods transport businesses who provide a vital logistical service to businesses and organisations across the country.
The current price of UK fuel is scandalous. Figures revealed by the Scottish National Party (SNP) in November threw a sharp spotlight on just how heavily taxed fuel is in the UK – before tax, UK diesel is the second cheapest in Europe; after tax it is the most expensive. If fuel duty continues to be pushed up, fleet businesses will be left perpetually struggling to stay afloat, which won’t do the UK economy any favours.
New transport minister Philip Hammond has promised to end Labour’s ‘war on motorists’. However, how he will achieve this with a £683 million hole in the Department for Transport’s budget is rather hazy. We’ve already learned major road building projects are going to be put on hold, so motorists shouldn’t expect our overly congested roads to improve any time soon.
Despite this, the new Government has made some positive first steps. The Conservative’s pre-election proposal for a ‘Fair Fuel Stabiliser’ is still on the agenda after the new Government promised to consult on the idea, and ‘pay as you drive’ road pricing will now only apply to new roads which has prompted a sigh of relief among fleet companies.
One area the new coalition should be focussing on is the use of our roads by foreign HGVs, which currently pay much lower taxes abroad and therefore enjoy a competitive advantage over domestic hauliers. Imposing taxes on foreign lorries will not only level the playing field for UK fleet companies but could also finance tax breaks for businesses whose main business operation focuses on road transport.
Tackling the budget deficit has at least forced the Government to address the massive over-spending in areas such as speed cameras and over-running road works which have been a huge drain on the transport finances in recent years. The money saved from cost-cutting measures like these should go straight back into the industry to tackle real problems such as congestion and poor road maintenance which cost fleets thousands every year in lost time and vehicle repairs.
The new Government certainly doesn’t have an easy task ahead of it and all industry sectors will suffer as it tries to recoup the country’s £156 billion deficit. But the freight industry is already in a fragile state. Whatever the Government decides to do, the decisions made in the emergency budget on 22nd June will be instrumental to the future of the freight and haulage sector. Severe budget cuts, tax hikes or other damaging initiatives could make or break many fleet companies already struggling to stay afloat. And yet, with huge budget cuts to make, something has to give. We will have to put our faith in the new Government to do the right thing.”
Jakes de Kock is The Fuelcard Company’s Marketing Director. For further information, visit: www.fuelcards.co.uk
Published: 14/06/2010
