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Budget helps truck drivers in the short term

Budget helps truck drivers in the short term
31 March 2011

Post-Budget response has been one of relief from truck owners and freight organisations but, with no sign of oil prices stabilising, are the new measures just short term first aid - and will fuel prices actually decrease at all?

With the price of diesel rising by approximately 20% over the last 5 months, there has been an increasing clamour for the government to do something to help beleaguered truck and freight companies. Last week's budget showed that George Osborne has been listening, and truck owners have welcomed the scrapping of the planned 5p per litre increase in petrol duties from April 1st and the additional 1p reduction.

Peter Carroll, the former truck driver leading the Fair Fuel campaign group said of the first decrease in pump duty for over 10 years. "We are really delighted. This is excellent news and represents a real change in approach from government although we have yet to see whether the oil companies will pass the reductions on."

The chief economist of the Freight Transport Association, Simon Chapman, said that the reduction was crucial to keep food on UK shelves. "Our primary goal coming into this Budget was to see the fuel duty rise in April scrapped and for a fairer deal for our members and all road users in difficult trading conditions.

"Clearly, Mr Osborne has listened to our concerns and recognises that for economic growth to be sustained, then freight transport is needed to keep shop shelves filled and businesses supplied."

However, Road Haulage Association chief executive Geoff Dunning was more cautious, pointing out that inflation would still be factor in 2012. "The fuel duty cut will go some way to bringing relief to an industry that has quite literally been fighting for its survival. However, the inflation element has not been cancelled but simply postponed and we face two sharp increases in quick succession next year."

The fact still remains that the government can do little to stop the rise in oil prices around the world, so is this just a "short term first aid" bandage, as AA president Edmund King claimed. Truck drivers and motorists alike will be waiting with bated breath.