Budget holds no surprises for UK freight forwarders

BIFA director general, Peter Quantrill said that BIFA is pleased that any major changes would be subject to public consultations.

With reports indicating that a statement is likely to be published in the autumn, BIFA will be lobbying its contacts in government to make the point that a possible ‚plane tax‘ remains an ill-conceived proposal that would do nothing to uphold the UK’s competitive edge as a major freight hub for international carriers serving Europe.

"The ‚plane tax‘ proposal is not new – the previous government considered it but realised, after consultation with trade, including BIFA, that there were a number of show-stopping impracticalities to the scheme. Not least of all those relative to taxing airlines whose aircraft use UK airports as a drop/pick up point for through services en-route from origin to final destination," said Quantrill."

BIFA also welcomed the news that the coalition government had made good on its promise with a confirmation of the scrapping of backdated port rates demands, with Quantrill saying that the move signals a welcome break for Britain’s hard-pressed international freight sector and leaves businesses at UK ports free to concentrate on facilitating import and export freight movements.

However, BIFA expressed disappointment that while there is no new rise in fuel duty, the phased introduction of the previous budget’s increase means that duty will rise by 1p per litre in October and by 0.76p per litre in January 2011.

Quantrill pointed out that BIFA members are facing fuel prices at record levels, as well as steep rises in other costs, while foreign hauliers are offering cross-border services with cheaper fuel purchased abroad.