TRANSPORT
Although it might be a step too far to say measures in the Budget were a victory for the poor put-upon motorist at the petrol pump, the Chancellor did provide some relief for beleaguered drivers by not only postponing next month’s planned fuel duty increase but also cutting the current duty by 1p a litre.
Mr Osborne also announced that the approved mileage allowance payments for those using their own vehicles for work would rise from 40p to 45p per mile for the first 10,000 miles and 25p per mile thereafter.
The fuel duty move was welcomed by a variety of organisations representing motorists and by the haulage industry.
One leading Midlands haulier said he was “very pleased” but also pleasantly surprised.
Barry Proctor, managing director of Barry Proctor Services in Stoke-on-Trent said: “This will reduce our costs by £450 per vehicle per year. We run 20 vehicles so that equates to a saving of £9,000 per year.
“While the price of fuel can fluctuate the duty is there all the time.
“What we need now is peace in the Middle East to return to normal fuel prices. My only concern is the petrol retailers. I know they have been struggling but I would like to see the cut immediately reflected in the price at the pump.
“It would be nice to see that 1p a litre coming off tomorrow but they might claim they’ve already paid the duty on it.
“All in all I am delighted. I expected the fuel duty to be frozen but didn’t expect it to be reduced by 1p.”
Other good news for the haulage industry was the freezing of Vehicle Excise Duty on commercial vehicles over 3.5 tonnes.
Though Mr Proctor pointed out that this had been frozen for some time and no rise was anticipated, James Watkins, executive director, Business Voice West Midlands said: “With the West Midlands being the logistics hub of the UK and for some time the sector being hammered by rises in world oil prices, freight firms have been crying out for some kind of tax relief.
“We are pleased that George Osborne has heard this call and has put in place special measures for the industry.”
