Burns Freight Taxes Inquiry into fuel costs, foreign competition and freight taxes

Welcome to the Burns Freight Taxes Inquiry web site

As a direct result of the Government's unexpected decision to abandon the Lorry Road User Charge (LRUC) scheme in July 2005, the Freight Transport association (FTA) and Road Haulage Association (RHA) have undertaken a series of actions to counter Ministerial claims that high freight taxation in the UK is no longer a problem for industry.

Although there was much debate in the industry about the merits of the Lorry Road User Charging scheme, it was the only means through which the Government would meet its promises to the industry, given after the fuel protests in 2000, of reducing fuel duty levels and charging foreign trucks to use British roads. Without it, the Government has left the industry no further forward than we were in 2000.

The Burns Freight Taxes Inquiry is central to the joint FTA/RHA initiative and will be a formal, independent inquiry into the effects of high fuel duty and foreign competition on the UK road transport industry. Initially it has been asked to do three things:

1. Rebuild the case for a reduction in fuel duty by updating the data and cost models used during campaigns by FTA and RHA to tackle high levels of fuel duty in 1999 and 2000
2. Gather evidence from operators of the damaging impacts that high fuel duty is having on UK operators in 2005
3. Gather evidence from operators on the loss of business they are suffering as a result of foreign competition.

Later the inquiry will carefully assess the policy remedies which industry should be seeking from the Government.

The inquiry will involve consulting the widest possible audience, including members of both trade associations, non-members, academics, other trade associations and any other individuals or groups interested in the matter

Two other workstreams will also be undertaken alongside the inquiry. The Associations have asked a leading barrister to provide advice on whether the Government's fuel tax policy is in accord with European law. Work is also in hand to recalculate the wear and tear done to British roads by foreign vehicles.