Businesses have welcomed comments by the Prime Minister which hinted that a proposed rise in fuel duty may be abandoned.
The 2p rise had been due to take place in April but was postponed until October during the last Budget. Since the announcement, businesses have put increasing pressure on the chancellor to scrap the plans entirely.
According to the Guardian, Prime Minister Gordon Brown said the matter was one which ‘would be looked at carefully’ over the next few weeks, adding: “You’ll find that in most years since 2000, the duty has actually been frozen.”
However, Brown added that people should expect more price rises ‘for years to come’ as demand for fuel in Asia climbs.
Businesses said the comments provided a long-awaited respite, but added that Brown could do more to help ease the financial strain on them.
Stephen Alambritis from the Federation of Small Businesses (FSB), said: “Fuel is an essential liquid for small businesses, and it’s important the Prime Minister acts on the things he has control over – and he has control over that.
“It’s a good start but we think he could do better for small businesses and reduce the fuel duty further,” he added.
© Crimson Business Ltd. 2008
