Insight and Know-How

According to the Freight Transport Association (FTA), foreign trucks fill their diesel tanks before they arrive in the UK in places that have much lower fuel duty. Since British companies therefore have to pay considerably higher diesel fuel prices, the organisation believes many are losing out to their overseas competitors.

Furthermore, it said by not purchasing fuel in Britain, they are not contributing to the country's economy by spending money at its pumps.

The FTA stated that an inequity is also being created by the fact hauliers from the UK have to pay thousands of pounds to drive on roads in Europe each year, whereas foreign trucks do not have to pay similar charges in the UK.

Earlier this week, the government announced plans to correct this imbalance and charge trucks for using British roads. Since exempting vehicles registered in the UK from this fee would be illegal, the coalition is considering steps such as allowing them to pay reduced Vehicle Excise Duty in order to offset the charge. The FTA has commended the proposals, which are currently the subject of a consultation, but insisted any scheme that is put in place should not be "administratively burdensome" for domestic businesses. Simon Chapman, chief economist at the FTA, commented: "Clearly, ensuring that foreign lorries pay to use our roads is the right thing to do.

"Foreign lorries don't contribute a penny to Treasury coffers, leaving the taxpayer to foot the bill for the external costs they cause." Mike Penning, the roads minister, this week said he wants to ensure hauliers in the UK "get a fairer deal" in order to help "maintain the competitiveness of the logistics industry". Government figures show that lorries registered outside the UK undertake about 1.5 million trips to the country every year.