Haulage firm Irlams plans to register some of their 300 fleet on a temporary licence in December in Holland - even though none of their trucks will be driven outside Britain.

It is a move that could save the family firm about £5,000 per lorry.

"We don't want to do this but are being forced into it by the Government," managing director David Irlam told the Knutsford Guardian last week.

"We are not competing on a level playing field with other European hauliers."

In April's budget road tax for trucks was almost doubled

It now costs £5,750 to register a 40-ton lorry in Britain - about SIX times more than it does on the continent. It is believed Chelford-based Irlams, which employs about 420 staff, is the first British haulier to test the system.

On Monday Knutsford's Labour Euro MP Brian Simpson said other European costs such as VAT and wages were higher than in Britain.

"I appreciate that our road tax seems harsh compared to on the continent," he said.

"But it is all swings and roundabouts."

Mr Simpson, a European transport spokesman, said Government policy was designed to protect the environment and get freight off the road.

But Mr Irlam, whose company is growing at about 20 per cent each year, said British hauliers were suffering because foreign firms could charge less.

"It is the Government that will lose out eventually," he said.

"Foreign companies are registering abroad to work in Britain and soon British firms will do too."

Converted for the new archive on 13 March 2001. Some images and formatting may have been lost in the conversion.