NFU Scotland and the Road Haulage Association (Scotland) have called on the UK Government to act now to reduce the burden that record fuel prices and associated taxation are imposing on their respective industries.
As the key representatives of the road haulage and food and farming industries in Scotland, they have written to the Chancellor of the Exchequer, George Osborne MP asking him to address fuel costs in his forthcoming Budget, due to be delivered on Wednesday, 23 March.
The joint letter to the Chancellor calls on him to scrap any plans to increase fuel duty in April; asks that he support to the development of a fair fuel duty stabiliser and looks for commitment to introduce a reduction in fuel duty in all remote areas of Scotland.
NFU Scotland President Nigel Miller said:
“Immediate action on fuel is totally justifiable as transport sits at the centre of the whole economy. As farmers and food producers, our members are reliant on haulage to bring inputs onto the farms and crofts and we need to deliver our livestock and produce to the marketplace and the shop shelf. The fact that our fuel prices and our levels of taxation are now amongst the highest in Europe is undermining the efficiency and competitiveness of our whole food chain and if that is not addressed now then it will damage these areas in the long term.
“The rising cost of fuel is having a significant impact on our members’ businesses. The role of small, family businesses in rural areas – across agriculture, haulage and beyond – in generating economic growth and moving Britain out of recession remains critically important. We believe that three specific measures on fuel could be taken to ensure that the potential for growth and recovery is not put at threat. First and foremost, we urge the Chancellor to scrap the previously announced duty rise that is proposed to apply from 1 April.
“Secondly, the creation of a fair fuel stabiliser to regulate returns from fuel duty as oil prices increase would also make a major difference to small businesses and rural populations. A stabiliser was on the radar of some politicians when they were in opposition and who are now in Government, giving them the opportunity to deliver on a policy that they know will make a real difference to families and businesses at this time.
“Thirdly, we warmly welcome the commitment in the coalition agreement to introduce a remote areas fuel duty derogation. We believe, at the very least, that this kind of derogation should be applicable to all Scottish islands. However it should be recognised that fuel costs are disproportionately high in remote mainland areas as well.
Phil Flanders, from the Road Haulage Association said:
“It is important that we get this commitment from the Chancellor to tackle the cost of fuel as the constant increase in prices is having a serious destabilising effect right across the economy as a whole. Haulage is a good barometer to the health of the nation and right now it is showing constant storms and very low pressure! It is time that help was given to bring the nation’s hauliers a little sunshine.
“We need some respite and a positive signal from the Government on fuel issues would bring some stability to the many hard pressed businesses out there.”
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