Nov/Dec 2005

The eagerly-awaited report of the Burns Inquiry into the UK's lorry fuel taxation regime was published in November, and has been generally greeted as offering a balanced and rounded representation of transport operators' and users' concerns.

The report was initiated after the Government abandoned its Lorry Road User Charging scheme, which would have helped level the playing field for UK truck operators competing with foreign-based vehicles that arrive here with cheap fuel bought abroad.

The Freight Transport Association and the Road Haulage Association, which jointly commissioned the project, have broadly welcomed its findings. FTA Deputy Chief Executive James Hookham, said: "The report clearly finds that there are substantial issues of inequity which are impacting on the transport industry and which only the Government can deal with."

The report is open in admitting that some UK-based transport users (as opposed to providers) actually benefit from the low-cost operations of foreign-based hauliers, but points out that this undermines the viability of the UK's own transport industry.

It resists any temptation to advocate a return to the telematics-based charging schemes implicit in the Government's now-defunct LRUC scheme, and prefers a low-key, affordable approach to fuel taxation. It also wants tighter enforcement of drivers' hours and vehicle standards.

In a prompt Government response, the Chancellor has announced the creation of a Government/industry taskforce to consider the report's recommendations. This will include the Department for Transport, the Treasury and representatives of the FTA, the RHA, the CBI and the British Chambers of Commerce.

James Hookham has described this as "a constructive and welcome response by Government", while the RHA says the decision "shows the value of the independent Burns Inquiry," and adds that it is very pleased with the decision to tighten up enforcement.

Hookham adds: "We will be making sure this is not just another talking shop, but a collaborative effort with Government to develop solutions for industry."