The Freight Transport Association (FTA) has revealed its disappointment with the Chancellor's pre-budget statement.
The Chancellor has given no commitment to increasing investment in the transport system despite the recent hike in fuel duty and the rising congestion on UK roads. While the October 1 fuel duty will net the Treasury an extra £600 million this financial year, none of which will find its way back onto the roads and railway.
There is also confusion over the future role of environmental taxes. The commitment to freeze duty on natural gas used in vehicles for a further three years is welcome. However, the promise of higher taxes on Liquefied Petroleum Gas (LPG) leaves its future role uncertain.
Operators who have been encouraged to invest in LPG vehicles have now been left high and dry.
FTA chief economist Simon Chapman, said: “The Chancellor has chosen to side-step the issue of lorry road user charging and has completely ignored the debilitating tax regime of high diesel duty on the UK road transport sector. The Chancellor has yet to recognise the importance of the freight sector in delivering a competitive and successful economy. Instead he treats the sector like a cash cow, which props up his ambitious spending plans elsewhere.”