Essex haulier Bob Steward today threatened to take his lorry fleet to Holland if diesel and road tax was increased in the Budget this afternoon.

Mr Steward of R T Steward Transport, of Station Road, Lawford, claimed costs were far higher in this country and reckons his firm would be about £700,000 a year better off simply by re-registering in Rotterdam.

His company already has an office in Europoort, near Rotterdam, and Mr Steward said he was prepared to switch his trucks to his European depot unless Chancellor Gordon Brown gave hauliers an essential-user rebate on fuel and tax.

"Costs are far higher than those on the continent," said Mr Steward, revealing he had recently had to make ten people redundant.

The vehicle excise duty on an articulated lorry in this country is about £3,400 year, in Germany about £500, in Belgium £300 and in France £400.

Diesel in Holland costs 30p a litre as against the UK price of 62p.

The differences, Mr Steward said, made it impossible for UK haulage firms to compete. He forecast 26,000 jobs being lost in the next year.

Mr Steward employs 70 people at his Lawford depot where his company has been based for 16 years, and he stressed he would not be quitting the village.

He said he would still employ British drivers and his vehicles would still be working in this country but would have Dutch number plates and carry a Netherlands sticker.

Depending on today's Budget, Mr Steward said he would make his decision within the next two months.

In the meantime he has written to the Chancellor, Prime Minister Tony Blair and Deputy Prime Minister John Prescott as well as North Essex MP and shadow roads minister Bernard Jenkin.

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