FTA asks for government commitment

FTA has urged the government to remain committed to lorry road user charging and its scheduled introduction for 2006.

In its pre-budget submission the FTA has argued that the government must stay focused on achieving tax neutrality for UK road freight operators after the charge is introduced.

FTA chief economist Simon Chapman said: "The government must keep focused on achieving a level tax playing field for UK road freight operators. The lorry road user charge is not there to increase taxes raised from the UK transport industry but to create a fairer system and to make a charge on foreign vehicles."

The submission argues that the increase in diesel duty introduced on October 1 should be reversed. Chapman said: "The government should use fuel duty to create a more business friendly environment for road freight operator by using fuel duty to create greater stability in the price of diesel. A lower duty would send a message to the industry that the government has shifted away from a 'smash and grab' policy on road taxation to one which recognises wider economic and commercial considerations."