Foreign competition to cost £3 Bn
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Research carried out by the National Economic Research Association
(NERA) on behalf of the RHA and FTA has revealed that foreign trucks
are causing over £195 million worth of damage to the British road
network every year.
In addition NERA says that around 10,000 foreign trucks are operating on British roads each day. Running for a week at a time on cheap diesel bought on the Continent they collectively clock up over 500 million miles per year on the national roads network. NERA says that this unfair competition will rob UK hauliers, between now and 2020, of revenue estimated to be in the region of £3 billion.
Following the abandonment of the LRUC by the government in July, unlike European governemnts with their tolls and vignettes, the British government now has no way of recouping monies lost in road damage caused by foreign trucks and no way of helping domestic operators combat foreign competition by establishing a level playing field.
NERA says that if foreign operators were forced to run in the UK on locally bought diesel this would raise £250 million per year in duty that could be put towards roads maintenance costs. It would also deter foreigners from operating in the UK.
The RHA's chief executive, Roger King said: 'The duty on diesel in the UK is 47 pence per litre. This is more than double the duty levied throughout the rest of Europe. Little wonder that foreign hauliers ensure they have a full 1500-litre tank before coming over here. They avoid paying our prices and adding insult to injury they create almost £200 million worth of damage to our roads. It is plain daft. An own goal by the UK government.'
The NERA research forms evidence in support of the Burns Freight Taxes Inquiry.
In addition NERA says that around 10,000 foreign trucks are operating on British roads each day. Running for a week at a time on cheap diesel bought on the Continent they collectively clock up over 500 million miles per year on the national roads network. NERA says that this unfair competition will rob UK hauliers, between now and 2020, of revenue estimated to be in the region of £3 billion.
Following the abandonment of the LRUC by the government in July, unlike European governemnts with their tolls and vignettes, the British government now has no way of recouping monies lost in road damage caused by foreign trucks and no way of helping domestic operators combat foreign competition by establishing a level playing field.
NERA says that if foreign operators were forced to run in the UK on locally bought diesel this would raise £250 million per year in duty that could be put towards roads maintenance costs. It would also deter foreigners from operating in the UK.
The RHA's chief executive, Roger King said: 'The duty on diesel in the UK is 47 pence per litre. This is more than double the duty levied throughout the rest of Europe. Little wonder that foreign hauliers ensure they have a full 1500-litre tank before coming over here. They avoid paying our prices and adding insult to injury they create almost £200 million worth of damage to our roads. It is plain daft. An own goal by the UK government.'
The NERA research forms evidence in support of the Burns Freight Taxes Inquiry.
