OBR's-Fuel-Duty-Bombshell

19 ÓCentre for Economics and Business Research We have also carried out another analysis using the national environmental accounts. This allocates fuel usage by region. The weakness of this analysis is that it only looks at usage within the region rather than usage resulting from the region. So, for example, food purchased in London from elsewhere in the UK is treated as if its fuel content was only that generated by fuel usage within London itself. However it also provides a useful indicator of why London is atypical in fuel usage. The key point is that the value of road fuel consumed IN London is only 0.8% of GDP compared with the national average of 2.7% of GDP and between 3 and 4% of GDP% in all other regions except the South East. It is not entirely surprising that decision makers in London fail fully to appreciate the importance of fuel usage in other parts of the country. Table 6 Fuel usage as % of GDP 2019 based on environmental accounts Wales 4.0% Scotland 3.0% North East 3.5% North West 3.1% Yorkshire and the Humber 3.7% East Midlands 3.8% West Midlands 3.5% East of England 3.4% South East 2.7% South West 3.3% Northern Ireland 3.7% London 0.8% UK 2.7% 4.9. Impact on vans and other light goods vehicles drivers Vans are the fastest growing form of traffic on UK roads according to a survey sponsored by Renault Vans in the Daily Telegraph: ‘ For the past four years, light commercial vehicle (LCV) traffic has increased by 4.1pc on average per annum – the most of all traffic types over the period – and last year each van travelled 12,811 miles on average, which works out at close to 60pc more than the average car (8,082 miles)’ 21 . Pre pandemic the Department of Transport showed that this had risen further to 13,474 22 in 2019. A survey by Mercedes Benz has indicated further changes during the coronavirus pandemic: ‘The coronavirus pandemic has seen a significant increase in working hours for van drivers. On average, drivers report they are working almost 20 hours more per month. Despite the added pressure, most drivers say that they feel appreciated by colleagues, employers and the public. In a recent survey conducted by Mercedes-Benz Business Barometer, 82% of van drivers and operators feel that their efforts have been appreciated by customers during the crisis, with 27% receiving a thank you message on social media and 21% receiving applause while out on delivery. 21 https://www.telegraph.co.uk/connect/small-business/operations-and-logistics/renault/how-many-miles-do-vans-clock-up/ 22 DfT National Road Traffic Survey September 2020

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