Flint Insurance

Flint Insurance

March 29, 2010 01:00 ET

Fuel Duty Reprieve May Not Be Enough for Road Hauliers

MIDDLESEX, UNITED KINGDOM--(Marketwire - March 29, 2010) - In his Budget speech, Chancellor Alistair Darling told the House of Commons that the planned increase in fuel duty, which was due to come into effect on the 1st April this year and represents a rise of 3p per litre, will be introduced in three stages over a 9-month period. Following widespread criticism, the Chancellor announced that the fuel duty increase would be staggered to help reduce the burden on motorists and the road haulage industry. Specifically, the Treasury will forego £120 million in fuel duty revenue from April this year, an additional £60 million in October and a further £30 million in January 2011.

A spokesperson for Flint Insurance, a specialist Lorry Insurance provider commented: "In light of ever-increasing petrol prices, the Chancellor's decision to stagger the fuel duty increase will, at least in the short-term, help many haulage and motor businesses survive. However, with a general election on the horizon, there is good reason to believe that the Chancellor made his decision in order to placate the public rather than ensure the future of the road haulage industry."

James Hookham of the Freight Transport Association (FTA) also said: "For companies struggling to stay afloat, a staggered approach to increasing fuel duty will provide some breathing space. However, any increase in fuel duty, which is an unavoidable business cost, is bad news for the economy in the long-term".

The Chancellor's decision will save the road haulage industry £150 million in the months leading up to January 2011; however, many motoring organisations are concerned that the long-term effects of the increase are unsustainable. The AA has warned that car fuel costs will rise by £38 per year following the increase in April alone, whilst HGV Insurance companies have questioned the merits of the Chancellor's staggered approach to the fuel duty increase.

Flint Insurance is an independent insurance broker, based in Harrow, Middlesex. With over 30 years' experience in the trade, they can offer a range of cover for businesses including specialist truck insurance cover throughout the UK. By using a panel of over 35 insurers, they can provide the most appropriate and cost-effective cover for their clients.

For further information, please visit: www.flintinsurance.co.uk or call 0800 021 4501.

Contact Information