The new charge is supported by UK businesses and will be introduced in April 2014. The levy will be a time-based charge of up to £1,000 a year or £10 a day and will apply to lorries weighing more than 12 tonnes, using UK roads.

Every year there are around 1.5 million trips to the UK by foreign registered lorries but none of them pays to use our roads, leaving UK businesses and taxpayers to foot the bill. In contrast, when UK hauliers travel abroad then in most cases they have to pay to use the roads.

This new act will help the UK logistics industry remain competitive by making sure that operators from abroad are paying towards the cost of building and maintaining the UK’s roads, as well as creating a level playing field for domestic operators.

The FTA (Freight Transport Association) has welcomed the new law. “FTA has supported the idea of a charge on foreign vehicles for many years as a way of partly addressing the competitive differences between British registered operators and foreign-registered vehicles,” states James Hookham, FTA’s managing director of policy & communications.

“There were important conditions attached to our support to avoid additional costs and burdens falling on UK operators, as the charge could not be applied to foreign vehicles alone – and, so far, these have been met,” he continues.

“The next key event is the Chancellor’s Budget Statement on 20 March when the new reduced VED [Vehicle Excise Duty] rates will be announced. We will be watching to make sure that UK operators are not disadvantaged.”

UK hauliers will pay an annual or a six-monthly charge for each lorry at the same time and in the same transaction as they pay its VED. Foreign hauliers can pay daily, weekly, monthly or annual charges. Non-payment of the charge will be a criminal offence, which could result in a fine of up to £5,000.

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The Energy Saving Trust says that if half the goods vehicle drivers in the UK lightened their vehicles by 75kg it would save around £50m on diesel each year, this would also result in 100,000 fewer tonnes of carbon dioxide emissions.

The figures are based on new research carried out by the Centre of Excellence for low carbon and fuel cell technologies – on behalf of the Energy Saving Trust, which for the first time models the impact of weight on fuel consumption using real-world driving conditions.

The research studied empty and fully loaded LGVs on typical urban and rural driving routes that accurately represent everyday driving conditions.

Under these conditions the research found that a typical car-derived van, will use around 26% less fuel when empty compared to when fully loaded and for panel vans such as the Peugeot Boxer, the difference in fuel consumption was up to 33%.

Energy Saving Trust senior knowledge manager Tim Anderson said: ‘Drivers often treat commercial vans as mobile store rooms for rarely needed equipment or parts, reducing the vehicle’s fuel economy. In addition, items such as unused roof racks add to air resistance, which increases fuel consumption.

‘Reducing the amount of additional weight in a vehicle will not only improve their fuel economy but it may also reveal that they have more space than they need.

‘As a result, businesses could consider downsizing their fleets and opting for smaller, more economical vehicles which better suit their company needs.’

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Thousands of cars could be seen diverting away from the VIP-only “Games lanes” – fearing a £130 fine – as confusion spread about their operation.

The only Olympic lane to come into force today was on the M4 from Heathrow into central London, with the former M4 bus lane reserved for athletes and 2012 dignitaries.

A Transport for London spokesman said: “The M4 is flowing well today and central London traffic is down by 10 per cent, showing people have heeded our message not to drive in central London.”

But on main roads across the capital already painted with the Olympic rings logo, designating them as Games lanes, drivers were seen cutting into the middle lane — causing bottlenecks in the process.

This was happening on roads such as the A4 – while on the A40 Marylebone Road, the Games lane was empty of vehicles, causing congestion in the “normal” lane.

All Games lanes except that on the M4 remain open to all traffic until July 25 – two days before the opening ceremony – in a bid to minimise disruption to motorists.

Eltham MP Clive Efford called for leniency after raising the fines issue with Met Police Commissioner Bernard Hogan-Howe last week.

The police chief insisted there would be tough enforcement. “ People have to respect the lanes,” Mr Efford said. “But when the enforcement comes in, they [police] have got to look at the circumstances and if it’s a simple mistake, then I think they should look at it favourably.”

Some drivers said the lane system was so poorly signposted it was causing confusion and tailbacks, especially on access roads to the motorway.

Max Oppenheim, 40, a hedge fund manager from Chiswick, said: “I have been past it three times and only noticed the sign saying ‘ Olympic Lanes’ once.

“It is causing a bottleneck at the access after Hogarth roundabout, as when you come off, people are instantly cutting in from the right lane to avoid it.

“I effectively got T-boned. You can’t see it from a hundred yards back. There needs to be more clarity”.

However, Pedro Cintra, 40, who works for a media company, said: “ The road is fine, the Olympic Lane made no difference. The traffic was no worse than usual.”

Van driver Phil Roberts, 30, said: “The M4 was okay and the traffic was better than last week when it was closed. I wasn’t aware of the lane though and didn’t see the signs.”

The M4 lane can, in theory, operate between 5am and 10pm but will be activated based on demand.

It stretches along 3.5 miles of the eastbound M4 between junctions 3 and 2 —  the route of the former M4 bus lane which was abolished by the Coalition government. All other motorists are banned from the lane during operating hours but licensed taxi drivers are exempt.

Vehicles of 7.5 tonnes-plus are banned from the M4 link during ongoing repairs to the damaged Boston Manor flyover and are being diverted along the A4. But official Olympic coaches and buses are exempt from the ban.

Elsewhere in the capital jams have formed on roads as motorists avoid the lanes marked with the Olympic rings — even though most of the restrictions will not be activated until 6am on Wednesday 25 July.

Traffic has built up on an eastbound stretch of the North Circular near Wembley as three lanes of traffic converge into two. Motorists claimed a sign saying the Olympic lane was not in use was not clearly visible.

In other news, Stuck in a traffic jam for five and a half days !

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At-work drivers are almost 50% more at risk of accidents than other motorists, even with higher mileage taken into account. They account for a third of all collisions, or 1,000 deaths and 13,000 serious injuries each year in the UK and, according to RoSPA, many of these could be avoided by explaining the benefits of a healthier lifestyle more clearly.

We’ve looked at some of the key health areas affected by driving and how motorists can improve their mind and body, to be fitter and safer behind the wheel.

The problem of a tired mind on drivers

Symptoms: Although alcohol is commonly perceived to be the biggest cause of accidents, sleep deprivation can actually impair driving more than being over the legal blood/alcohol limit. A lack of deep sleep causes the brain to process information more slowly, delaying reaction times and reducing the driver’s ability to concentrate or make decisions.

Effects: A recent study by Loughborough University showed fatigue was a contributory factor in 20% of fatal or serious motorway crashes. Tired drivers are also 50% more likely to be seriously injured or killed than those who are properly rested, because in many cases they don’t make an attempt to avoid the crash. Yet research by the Department for Transport showed over half of respondents had driven while they were tired, adding that the figure was limited because it only covered those who admitted to it.

Cure: Short naps of up to 15 minutes are the best way to boost alertness. Caffeinated drinks can be helpful too, but research in America has shown the effects are short-lived, with slow reaction times returning within an hour. Naps and caffeine should be seen as emergency solution, though. The best cure is to plan drivers’ duty cycles to avoid extended working hours.

Caffeine is a one-hit fix, but not a cure

Energy drinks are good as a quick fix, but they’re no substitute for regular breaks. Having a high-caffeine drink is a one-off hit – you can’t repeat it, as this type of drink does not produce the same effect in a couple of hours’ time.’

Big meals burn energy and cause tiredness

Symptoms: During digestion, the brain diverts blood to the gut to absorb nutrients into the bloodstream, causing a drop in oxygen to the brain itself. The larger the meal, the more energy is required to digest it and the more drivers will feel drowsy as a result.

Carbohydrate-rich meals, such as chips or pasta, can also be problematic. The high glucose content of these foods causes the body to release insulin to speed up absorption into the body, but causes a rise in the levels of a chemical called tryptophan in the brain. When it reaches the brain, tryptophan is converted to melatonin, which is a hormone that promotes sleep.

Effects: The period between 2pm and 4pm is the second most common time for fatigue-related accidents, and these are often caused by the after-effects of eating a large meal.

Cure: Drivers should avoid stodgy lunchtime meals in favour of lighter snacks and salads to kerb early-afternoon drowsiness and stay hydrated to maintain concentration – the brain relies on water to function properly. Taking a break after a large meal can also reduce the risks.

Take a packed lunch rather than stock up at services

Jill Joyce, senior policy and research adviser at the Institution of Occupational Safety and Health (IOSH), recommends taking sandwiches, bottled water and a flask of coffee or tea for long trips, avoiding the temptation to rely on whatever fat and sugar-rich snacks are available at motorway services and fuel stations en route.

Stress causes bad decisions to be made

Symptoms: The feeling is caused by the ‘fight or flight’ mechanism that prepares us for physical challenges. Under pressure, this causes the brain to release adrenaline, a stimulant, which increases heart rate, tenses the muscles and changes the way we process information.

Effects: While this allows us to make decisions more quickly, which is ideal for responding to immediate threats, stress usually means they’re not considered fully, which can be dangerous when driving a car. Drivers under stress make decisions because they are thinking instinctively and short term, a sort of “tunnel vision” and not planning and assessing their actions over longer term.

Prolonged periods of stress are also very tiring for the body, and over time leads to the same slower brain functions as fatigue.

Cure: Stress is caused by not feeling in control, so preparation for every journey can help at least take that element of uncertainty out of the equation. Neil Greig says: ‘Knowing what to expect ahead in terms of delays, giving yourself plenty of time for the journey, having fuel in the car, knowing the car is in good shape mechanically and knowing your route etcetera will all help reduce worry.’

Music has also been shown to calm drivers. Softer tunes can slow brainwaves, which in turn lead to a reduction in the heightened heart rate and breathing caused by stress.

Work is stressful, and driving doesn’t help

RoSPA says 85% of motorists find driving itself stressful, regardless of other pressures, so ensuring drivers are fully prepared, trained and relaxed for the journey is vital.

The problem of poor posture on the body

Effects: Long periods of being sat in badly adjusted seats puts stress on muscles and joints, leading to long-term neck, arm, leg and back pain.

Cure: Many companies give advice to avoid poor posture while using computers, heavy machinery or other office equipment. But it’s just as important to ensure drivers adjust their driving position appropriately too: RoSPA advises fleets to consider work vehicles in the same bracket as other heavy machinery. At the very least, a decent demo session should be undertaken, especially for long distance drivers before they commit to a car for three or four years.

Most cars now offer heavily adjustable seats, rake and reach adjustment for steering wheels and headrests which can be fixed to prevent whiplash in an accident – if they don’t, should they be on the choice list?

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Fuel duty was due to rise by 3p a litre in August. Hauliers and motoring associations had called on Osborne to cancel the hike in his budget earlier this year.

At the time the Chancellor insisted the hike would go ahead, so his U-turn on Tuesday is yet another plank of the Budget to be reversed. It follows policy reversals on the Pasty Tax and the Charity Tax.

The government says its series of freezes on fuel duty mean that petrol is 10p cheaper than it would have been if all the rises had been introduced.

The Treasury said the U-turn was triggered by the deteriorating economic situation and said senior ministers had been considering the move for some time.

They rejected claims that the move was in response to calls from Labour’s Ed Balls earlier on Tuesday, who said the £500m underspend at the Olympics should be chaneled into a petrol tax cut.

Speaking in the Commons shortly after the announcement Balls told MPs: “We’ve now had U-turns on pasties, churches, caravans, skips, and today a U-turn on fuel, which we welcome.

“It would be interesting to know at what point the decision was made and if the transport secretary was told,” Balls went on, calling on the chancellor to perform further U-turns on tax breaks for millionaires and the so-called Granny Tax.

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The study concluded that there was evidence that the motor insurance industry operated in a “dysfunctional way that could push up premiums for drivers by £225m a year”.

The inquiry could have benefits for fleets: they are vulnerable to increased claims cost if they have a collision with a privately-owned vehicle.

The focus of the investigation is how insurers handle third-party repair and replacement car costs. Although the at-fault driver’s insurer is responsible for picking up the tab, the no-fault insurer usually has control over who provides these services.

Consequently, some companies are using expensive referral schemes or pre-existing arrangements with price control when organising repairs and courtesy cars.

Fleet insurers have long warned fleets to report incidents immediately as this gives them the best chance of taking control of such costs which can minimise the impact on the fleet’s insurance premiums.

Larry Smith, MD of Towergate Insurance, said: “It is inevitable that any positive change brought about by the Competition Commission review of the private motor insurance sector will be looked at by the other motor sectors including fleet.

“The fleet sector shares many of the same issues as private motor with personal injury and credit hire costs inflating third-party claims, which in turn are having a negative effect on premiums. Any action to help reduce these costs will be very welcome.”

Insurers have long complained that credit hire and repair has been a source of excessive costs which do not benefit insurers or consumers.

An Aviva spokesman said: “There is no quick fix and it is our hope that the Competition Commission will bring fundamental reform which will help reduce cost pressure; we would also like to see the ban on referral fees that will apply from next April extended to include credit hire firms.”

The OFT has concluded that the insurance industry should be competing on the basis of price and service but instead is “focusing on gaining the competitive edge through raising rival insurers’ costs” and increasing their own revenues.

Andrew Moody, managing director of Retail Motor Law, who used to work in the body repair industry before becoming a solicitor, undertook a two-year study for OFT which he believes was instrumental in its findings.

“The whole industry needs to be looked at as this will affect fleet customers as well as private motorists,” he said. “Fleets must put something into practice to minimise third-party claims.”

He suggests that fleets investigate having their own contract with one of the national networks to handle third-party repairs and replacement vehicle hire without the expense of a third party organising it.

He says if fleets can offer a reasonable service at lower cost to the no-fault party, they can limit their liability.

The other party has a legal duty to mitigate costs wherever possible, so choosing a more expensive alternative for repair may not be acceptable.

Donna Scully, chair of the Motor Accident Solicitors Society (MASS), said: “The scale of the problem with the repair and replacement vehicles is immense and it remains to be seen what more will be uncovered.

“Money is clearly being made from consumers behind their backs and MASS would welcome full disclosure of specific fee income on every case.

“Insurers, solicitors, government and regulators need to stop blaming one another.

“We urge the Government to bring all parties together, not just insurers, to find a solution that is right for consumers and protects genuine accident victims.”

The Association of British Insurers has welcomed the OFT’s decision, saying it has long called for an investigation into inflated pricing for credit hire vehicles and excessive hire periods.

The insurance industry has cited personal injury claims as the cause of rising premiums and this remains a problem.

Although road accidents fell by 23% between 2005 and 2010, to just 154,000, the number of personal injury claims in 2010-11 has risen by 70% to 791,000, costing insurers more than £2bn.

In other driving news: The Transport Secretary warns of fuel duty to rise in August.

Fuel cards give your fleet drivers an easier and safer alternative to cash or plastic at the pumps. 

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Transport Secretary Justine Greening said she was not prepared to stand in the way of the rise in fuel duty expected to come into effect in August.

It means already cash-strapped fleet companies will have to fork out more than £1.40 a litre for petrol – most of which is tax.

Instead, Miss Greening wants to push petrol companies to slash the cost of fuel at the pumps, to bring it in line with the falling cost of oil globally.

Former Treasury minister Miss Greening said: ‘The taxes that we get in fund the public services that we all rely on.

‘Surely it’s better to challenge the petrol retailers to pass on reductions to motorists and actually I think that’s probably the most important thing to do.’

She said it was important that the Treasury focus on cutting the deficit in light of what is happening to some countries in Europe. Ministers will be left to find £1.5billion to plug the income gap if the fuel duty rise is pulled.

However, the Prime Minister is under pressure to ditch the fuel price rise from senior ministers who have voiced concern that it will damage support for the Tories from poorer voters.

Ideas under consideration include cutting the 3p rise to 1p or 2p, or deferring part or all of the rise until next spring.

As of just a few days ago, 50 MPs, including seven Tories, have now signed a Commons motion calling for the price rise to be scrapped.

They were joined by leading businessmen, with the boss of Asda also demanding the tax hike is cancelled.

This week, the SNP will also try and force the Coalition to scrap the duty rise by forcing a vote as the UK budget complete the final stages of its passage through Westminster.

The Scottish Chambers of Commerce has backed cross-party action to scrap the hike.

Chief Executive Liz Cameron said it would be ‘a welcome boost for many fleet businesses which are having to contend with high transportation and utility costs at a time when domestic demand remains subdued’.

But Danny Alexander, the Chief Secretary to the Treasury, has played down hopes of progress.

He said last week: ‘Right now, taxation on fuel is 10p a litre less than it would have been if Labour’s plans had been in place.

‘But given the huge issues we have with public finances, we also need to make sure  that we’ve got the money coming through the tax system, and the increase in fuel duty is part of that.’

June’s AA Fuel Price Report shows that, since mid-May, average UK petrol prices have fallen 4.63p a litre, from 138.40 to 133.77.

This is on top of the 4.08p-a-litre fall the previous month and is the biggest monthly drop since the petrol price dived 5.4p a litre between mid-November and mid-December 2008.

Even so, the overall 8.71p-a-litre reduction in the pump price petrol since the 142.48p record on April 16 is still short of where it should be, the motoring group said.

Under government pressure to make pump prices transparent, the fuel industry will have to prove in the future that UK drivers are paying a fair price for fuel, the AA said.

In the past month, the average pump price of diesel has fallen 4.99p a litre, from 144.30p in mid May to 139.31 now.

But UK diesel costs at least 4p a litre more than in Europe.

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Other motoring offences that are not currently punished with a fixed penalty such as “tail-gating”, erratic braking or undertaking another vehicle could in future be treated in the same way as speeding offences.
For more serious offences such as driving without insurance, which currently incurs a £200 fine, it is proposed that this is increased by 50% to reflect the relative seriousness of this offence.

The current levels of penalty fines were set in 2000 and there is a view that with no adjustment having been made for inflation, the severity of the punishment has actually diminished over time and may require revision. With motoring costs such as car insurance and fuel prices proving to be a heavy burden for all motorists in tough times, proposed increases in fixed penalty charges may not be well received.

In other news, Fleets Drivers are warned about Police clampdown on drink driving.

Fuel cards give your fleet drivers an easier and safer alternative to cash or plastic at the pumps. 

Check out www.forecourtfuels.co.uk to see which package best suits your fleet’s needs.