Darling Confirms Duty Rises of 16% in 16 Months

LONDON, December 9 - The Road Haulage Association expressed strong disappointment that the
Chancellor has chosen to go ahead with another above-inflation increase in
diesel duty. The rise next April will be the fourth since last December - in
which time duty has risen by 16% in as many months.

"This has been a stunning series of increases in the depth of a
recession," said RHA Chief Executive Geoff Dunning. "Duty amounts to a 25%
tax on the operation of this essential service and will drive up transport
costs for UK industry and retailers, reducing UK competitiveness and
increasing prices for the general public.

"Transport companies will have no alternative but to pass on the further
duty increase to their customers - and we would urge the industry's customers
to recognise the need to pay sustainable haulage rates."

The RHA noted the continuation of the Enterprise Finance Guarantee
scheme, for which the road haulage sector is eligible following its strong
representations in January this year, and other measures to support smaller
businesses.

The RHA will engage with the Treasury over minor changes to the VED
scheme, which are required under EU rules following the decline in the value
of sterling against the euro.

Kate Gibbs, Tel:+44(0)1932-838917, Mob: +44(0)7979-531451, email: kate.gibbs at rha.uk.net