JOBS could be lost if lorry firms press ahead with plans to move abroad over rises in fuel duty.

The warning from the head of an industry group comes after East Lancashire haulage bosses slammed the latest budget for hitting their businesses.

Andrew Horner, chairman of the Federation of Recruitment and Employment Services Drivers division, said he was not surprised some firms planned to move abroad. "Diesel is cheaper abroad and vehicle excise duty is a fraction of what it is here," said Mr Horner.

"It makes sense for companies to register their trucks in Europe and operate on British roads under the so-called plates of convenience.

But if companies set up depots in Europe they are very likely to employ European drivers, meaning far fewer jobs for British drivers." Haulage firms were furious over rises in fuel costs and excise durty in the budget

Wayne Kenyon, managing director of Blackburn-based Kenyon Road Haulage, said: "Profit margins are so low many firms won't be able to sustain the increase.

"We can't get any more money out of the customers because they are being squeezed too.

"The casualties from the transport industry are continuing to grow because there's not enough money in the job."

He said the increase in diesel prices would cost his business an extra £40,000 a year and he was considering opening a European branch to avoid tax by registering and fuelling his lorries where taxes on diesel and excise duty are lower. Mr Kenyon, who has run the business in Thornley Avenue, Blackburn, for nine years, warned that the Chancellor could face a mass exodus by hauliers going abroad to escape the extra tax burden.

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