The government is to impose a Britdisc on foreign lorries as part of a package of measures designed to help Britain's road haulage industry weather the fuel crisis, Lord Macdonald, transport minister, indicated yesterday.

The disc or vignette, which would cost at least £1,000 per lorry, is likely to be announced by the chan cellor Gordon Brown in his pre-budget statement later today which will rule out any cut in fuel duty as demanded by protesters.

Lord Macdonald told the conference that the government had been examining the case for a Britdisc in talks within the road haulage forum and conceded that road haulage needed a package of measures to help it.

He admitted that thousands of small hauliers were losers as the industry underwent change, with low profit margins, a shortage of drivers and a squeeze by big UK transport companies and foreign competition.

The vignette, similar to the road permit required on many European roads, would make foreign hauliers in larger lorries "who do the most damage to our roads" make a contribution to the costs of repairing and renewing roads. The minister ruled out the 26.2p cut in fuel duty originally demanded by haulage protesters as required to bring the cost of diesel into line with European prices.

"I am well aware of the problems faced by hauliers and farmers which I believe we can address but not through an unrealistic and irresponsible 26p cut in fuel," he told delegates.

Lord Macdonald said a cut on that scale would cause an immediate rise in interest rates by pumping £12bn into the economy. It would force ministers to scale back on help for pensioners and bring deep cuts in spending on schools, hospitals and transport.

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