The government is being urged not to raise fuel duty at the expense of small businesses that rely on freight transport for deliveries and supplies.
Lobby group the Forum of Private Business (FPB) has joined forces with the Freight Transport Association (FTA) in an appeal to the government to call off a planned 2p per litre increase in April.
Both organisations are also seeking long-term solutions to issues surrounding the volatility of the oil market and the higher rate of VAT UK firms pay on fuel compared to their European competitors.
“The government should learn from its previous experience of fuel protests and blockades, when petrol stations were forced to close because there was no fuel,” said Phil McCabe of the FPB.
“Many smaller firms were hit hard and it is not a situation we would like to see happen again.”
McCabe said that a previous FBP survey found that 67% of small business owners felt rising fuel duty would have severe consequences for their companies.
The British Chambers of Commerce (BCC) estimated that the extra 2p per litre on fuel duty could cost UK businesses up to £170m.
David Frost, director general of the BCC, said: “The ability for hauliers to compete with other European firms is looking increasingly threatened, especially considering the UK economy faces a slowdown in 2008.
“The government must urgently reconsider this unnecessary rise in fuel tax to protect hauliers and businesses who use the roads on a daily basis.”
© Crimson Business Ltd. 2008
