NEWS RELEASE

Wednesday 12th March 2008

UK Budget:
Chancellor's collapse on fuel duty means this is no 'Green Budget'

TRANSform Scotland [1] today criticised the Chancellor Alistair Darling's decision not to proceed with the fuel duty increase outlined in the Pre-Budget Report. TRANSform Scotland however welcomed the long-overdue proposals to reform the road tax (Vehicle Excise Duty) system.

Colin Howden, Director of TRANSform Scotland, said:

"The Chancellor's collapse on fuel duty means this is no 'Green Budget'. Instead of carrying on with a measure that would have reduced climate change emissions, the Chancellor has caved in to the roads lobby and put the duty increase on ice. This will badly damage the UK Government's credibility on climate change.

"The reform of road tax is welcome if long overdue. There needs to be greater incentives for people to chose low-emission cars over highly polluting vehicles such as SUVs, and the introduction of a top rate of £950 is a step in the right direction."

ENDS

NOTES TO EDITORS:

[1] TRANSform Scotland

TRANSform Scotland is the national sustainable transport alliance, bringing together rail, bus and shipping operators, local authorities, national environment and conservation groups, businesses and local transport groups.
We can be contacted at 5 Rose Street, Edinburgh, EH2 2RD. t: 0131 467 7714; e: <info@transformscotland.org.uk>; w: <http://www.transformscotland.org.uk>.

[2] Fuel duty: some facts

Fuel duty was frozen between 2003 and October 2007, contributing to making the real cost of motoring decrease, whilst the cost of public transport across the UK has increased.

ref: Parliamentary Written Answer, Jim Fitzpatrick MP, Parliamentary Under Secretary of State for Transport, 17 July 2007, Hansard Column 246W - see <http://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm070717/text/70717w0014.htm#column_246W>.

In the same period traffic increased by over 12% and road transport carbon emissions by almost 5%, with road transport now accounting for over a fifth of UK emissions.

ref: Transport Statistics of Great Britain 2007, Section Seven: Roads and Traffic, Table 7.1 - <http://www.dft.gov.uk/pgr/statistics/datatablespublications/tsgb/2007edition/sectionsevenroadsandtraffic.pdf>. Billion vehicle-kilometres in 1997 = 450.3, in 2006 = 506.4.

ref: Transport Statistics of Great Britain 2007, Section Three: Energy and Environment, Table 3.8 (b) - <http://www.dft.gov.uk/pgr/statistics/datatablespublications/tsgb/2007edition/>. Road transport by end user, million tonnes of carbon dioxide: 1997 = 136, in 2005 = 142.4.

Even if the planned 2p increase does go ahead later in 2008, and the next planned one in April 2009, by 2009-10, fuel duty rates will still remain 11 per cent lower in real terms than they were in 1999.

ref: Budget 2007, para 7.36 - <http://www.hm-treasury.gov.uk/media/F/D/bud07_chapter7_273.pdf>.

END OF NEWS RELEASE