These same vehicles operate almost entirely on diesel purchased in mainland Europe at duty levels less than half the rate that applies in the UK.  This creates unfair competition for UK hauliers and will rob the UK of £3 billion in lost revenue between now and 2020 when the Government plans to implement a national road pricing scheme which, amongst other things, will also solve this problem. 

If the current annual 1,072 million kilometres of foreign lorry miles in the UK were carried out using UK fuel, the duty would raise £250 million a year towards their road costs and they would cease to have an unfair advantage over local lorries.

 These figures come from research carried out by the National Economic Research Association (NERA) on behalf of the Freight Transport Association (FTA) and the Road Haulage Association (RHA). 

The research is to form evidence to the Burns Inquiry on Freight Taxes commissioned by FTA and RHA to investigate the impact of high levels of fuel duty and foreign competition on the UK transport sector following the Government abandoning plans for Lorry Road User Charging (LRUC) this July.  The LRUC would have imposed a charge on foreign vehicles.

There are up to 10,000 foreign vehicles working in the UK every day.  Unlike the UK, vehicles that go to mainland Europe are obliged to pay tolls and vignettes for motorways and other roads. With the exception of the M6 Toll and some estuarial crossings, foreign vehicles in the UK are not subject to any road tolls or other charges and because they bring all of their diesel with them, often in 1500 litre tanks, they enjoy a free ride in the UK for up to a week at a time. 

FTA Chief Executive Richard Turner says, "In the UK we have the fourth largest economy in the world.  Goods have to be moved around and in the main they have to be moved by lorry.  Lorries more than pay for the road wear they cause via UK fuel and vehicle duties - in 2005 they will collectively pay over £4 billion. 

"For the largest lorry, typical of those foreign lorries coming to the UK, a UK operator pays £25,000 a year to the Treasury.  Foreign vehicles make zero contribution.  That is wrong for the transport industry and wrong for all UK road users, whether lorry operators or car drivers."

RHA Chief Executive Roger King says, "The duty on diesel in the UK is 47p per litre.  But the average diesel duty throughout the rest of Europe is just 22p per litre.  Little wonder that foreign lorry operators ensure that they have a full tank of fuel before they come into the UK and avoid purchasing any while they are here. 

There is the double whammy of creating almost £200 million worth of road wear and of avoiding paying UK fuel duty amounting to £250 million.  It is plain daft.  An own goal by the UK Government."

The Burns Inquiry is due to report in late November.