‘Suffering’ hauliers call for duty freeze

From the archive, first published Tuesday 12th Feb 2008.

Haulage firms in the Bradford area will be severely hit by a proposed price hike on fuel, the Road Haulage Association has warned.

Chancellor Alistair Darling is planning to increase fuel duty by 2p per litre from April 1 in a move which has angered the haulage industry.

A delegation of representatives from the RHA and the Freight Transport Association, among others, have already met the Chancellor in a bid to get him to scrap the rise.

Malcolm Dodds, area manager for the RHA in Bradford, said: "Fuel prices have been volatile for a number of months. An additional 2p on fuel duty is adding insult to injury for our members.

"A lot of hauliers are suffering already and industry itself is in decline as a result of the current economic climate."

Asked whether firms could be forced to close over the proposed increase he said: "It is difficult to say. In the short term no but in the longer term we could see smaller firms going under.

"Those carrying their own goods can offset the charges by increasing the price of their goods but those transporting other people's do not have that option."

Mr Dodds discounted the possibility of widespread industrial action, however.

He said: "I don't think we will see fuel protests over this. People do not have the time, they would be very reluctant to protest. It is difficult enough for people just to keep their businesses going but this is an issue that is very close to our hearts."

Asked what the industry realistically hoped to achieve, Mr Dodds said: "We have gained some successes in the past and have managed to get duty increases suspended. We are hoping we can persuade the Chancellor to either scrap this proposed hike completely or to suspend it until such a time as fuel prices come back to a normal level."

The rate of inflation increased to 2.2 per cent last month as households faced rising food and petrol costs, official figures revealed yesterday.

And the recent round of energy bill hikes is set to make inflation rise next month as double-digit price rises for gas and electricity take effect.

The figures from the Office for National Statistics (ONS) showed that inflation remained above the Government's 2 per cent target for the fourth month in a row.

Fuel inflation rose at its highest annual rate since records began more than 11 years ago, according to the ONS.

Food price inflation also leapt last month, rising to 6.1 per cent, its highest rate since June 2001.

The Consumer Prices Index (CPI) - the official measure of inflation - rose from 2.1 per cent in December, having remained unchanged since October.

While the increase was lower than expected by economists, who had pencilled in a rise to 2.3 per cent in January, inflation is set to spike in February when all of this year's energy tariff rises will be included.

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