U.K. forwarders welcome fuel tax U-turn, press for essential user rebate

The United Kingdom government's decision to postpone plans to increase fuel duty has been given a cautious welcome by the British International Freight Association (BIFA), a not-for-profit organization representing U.K. companies moving goods across all modes.

The government's plans to add two pence per liter from October led to a number of high-profile protests in the country including motorway blockades and demonstrations outside the House of Commons by angry truckers.

Peter Quantrill, BIFA's director general, said the news was a victory for common sense. This is a positive message to freight forwarders and other businesses whose services are so highly dependent on fuel and play such an important role in the U.K. economy and international trade.

Quantrill repeated BIFA's call for the government to introduce an essential user rebate, adding that its members are disadvantaged by paying the highest diesel taxes in Europe.

Our members are facing fuel prices at record levels, as well as steep rises in other costs. Foreign hauliers are offering cross border services with cheaper fuel purchased abroad. 

Whilst we welcome the news of the postponement, we will continue to urge the government to take the next step and cancel it, as well as introduce an essential user rebate.

This would be a clear demonstration of support from government to businesses in our sector which operate on the tightest of margins and put us in a better position to both facilitate international trade and compete on a level playing field with foreign competition.

Source: American Shipper