The Freight Transport Association, the body that represents the interests of companies moving goods by road, rail, sea and air, welcomed his announcement that there is to be no rise in vehicle excise duty and that an inflation based increase in duty on the main road fuels be delayed for six months.

However, the FTA said the increase in diesel duty of 1.9 pence per litre works out as a 3 pct increase -- equivalent to the current level of inflation and adding some 260 mln stg per year to industry's transport costs.

The trade body also reiterated its belief that roads congestion is the major problem for all of UK industry.

It said it is imperative for investment in the government's forthcoming Comprehensive Spending Review to be dedicated to long-term improvements in the roads network, which would benefit the whole economy.

'As such the Chancellor's promise that the Comprehensive Spending Review will generate 'real term growth in transport infrastructure' is welcome,' the FTA added.