THE British Chambers of Commerce organisation is urging the government to support hauliers by slashing Vehicle Excise Duty for heavy goods vehicles and introducing a duty freeze on all types of fuel.

The BCC believes that reducing VED to £420, the minimum allowed under European Union law, is the simplest option to support hauliers and help narrow the competitive gap with continental firms.

The BCC argues in a pre-Budget paper that the cost of the reduction (£500m) is more than covered by the Chancellor's 'windfall' of £1.5 billion from additional petrol revenue receipts this year.

The BCC believes the remainder should be used to introduce a duty freeze on all types of fuel in the forthcoming Budget, to secure inflation-only rises for the next four years (£700m) and to support hard-hit rural communities (£300m).

Mr Richard Bindless, Chief Executive of Bolton and Bury Chamber, said: "The government needs to lift the heavy competitive pressure on our hauliers.

"The BCC's proposals provide a clear opportunity for the government to develop a more targeted strategy which will help the haulage industry and the wider business community."

A full copy of the BCC's Pre Budget Paper on Fuel and Vehicle Excise Duties is available from the Chamber.

Contact Policy Adviser Briony Simister on 01204 374618. Her e-mail address is: bsimister@chamberhelp.co.uk