by Saul Shackleford

Created on: November 20, 2007   Last Updated: November 25, 2007

We are now paying more than ever for our fuel, though a combination of instability in the middle east and the fuel duty escalator initiated in the 80s it has never been so expensive for us to run our cars. At present the percentage of what we pay at the pumps that goes into taxation (duty and VAT) is around 65% and that is compared with an average around 30% across the rest of Europe.

Consequently we are at a stage now where much of our industry is struggling with increased operating costs and is finding it more and more difficult to compete with its European counterparts. The haulage industry has been hit particularly hard of late as its profitability is intrinsically related to the cost of fuel and we are in a situation now where European companies are recognising they can send a fleet of trucks into the UK filled up with cheap fuel bought on the continent to do our domestic haulage while undercutting UK firms vying for the same work. This is happening more and more and can only be having a negative effect on our economy. Not only are the profits from haulage going abroad to have tax levied by other governments, but also their vehicles are not paying a single penny to use our roads.

Obviously there is a lot of business that can only be carried out by UK based firms and in these instances the increased operating costs only get passed on one way and that is to the end consumer. The trouble with this is that the fuel escalator was designed to encourage motorists to find alternate means of transport, however in this instance the entire population is indirectly being punished. Also this demonstrates how the price of fuel will inevitably drive up inflation and have a negative effect on everyone. Of course many will tell you that more freight should be moved by rail because it is both cheaper and greener. The truth is this is impossible due in no small part to the privatisation of the railways. There has been basically no investment in railways in the past 30 years and the present network simply couldn't cope with the volume of freight we move on a daily basis, and the amount of investment needed to bring it up to the same standard as the rest of Europe would literally bankrupt the country.

So what about the motorists and their alternatives to driving? Unfortunately since the selling off of public transport in the 80s to the private sector the quality of public transport is at an all time low. Apart from being hideously expensive, being run by private companies means

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