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26 Nov 2001
Research commissioned by Friends of the Earth shows that road hauliers have received a subsidy from the taxpayer worth almost 650 million a year since Chancellor Gordon Brown cut fuel duty and excise duty in this year's March Budget. Savings on each of the biggest and most environmentally damaging lorries in Britain could amount to more than 6,000 a year.
The research, by Malcolm Fergusson of the Institute for European Environmental Policy, shows
that in a full year, hauliers will benefit from fuel duty cuts by as much as 422 million. In
addition, rebates and reductions in Vehicle Excise Duty [VED] have benefited hauliers by a
further 227 million a year. The news comes as Gordon Brown puts the finishing touches to
Tuesday's Pre-Budget Statement.
It is estimated that since the Budget, more than 14 billion litres of diesel have been consumed.
About two thirds of this has been used by Heavy Goods Vehicles [HGVs]. In March, Gordon
Brown cut duty on ultra-low sulphur diesel (almost all diesel sold) by 3p a litre. The owner of
a large truck used for international haulage, covering perhaps 100,000 miles in a year, could
save as much as 1,900 a year.
Gordon Brown also cut VED by up to half for most classes of HGV above 7.5 tonnes,
backdated to November 2000. The average saving on VED over a year is about 971 for
standard HGVs over 12 tonnes. This rises to 4,625 for some of the heaviest _ and most
environmentally damaging _ articulated lorries.
Friends of the Earth wants Gordon Brown to rule out further tax cuts for hauliers when he
speaks on Tuesday, and to commit the Government to a tax regime on road users which
properly reflects the extent of the environmental damage they cause.
Commenting, Friends of the Earth economist Dr Tim Jenkins said:
"This research shows the huge scale of the handout that Gordon Brown
has already given Britain's truckers. This is the absolute opposite
of the principle that both Mr Brown and Mr Blair say they support _
that the burden of tax should be shifted away from social goods like
jobs and on to environmentally damaging activities like driving huge
lorries.
Mr Brown should use Tuesday's statement to rule out any further free
gifts of this kind. Our environment cannot stand the cost of political
bribes to fuel tax protestors".
A full copy of the IEEP Briefing is available from FOE Press Office
Contact details:
Friends of the Earth
26-28 Underwood St.
LONDON
N1 7JQ
Tel: 020 7490 1555
Fax: 020 7490 0881
Web: www.foe.co.uk/feedback.html
Media team
