Small businesses have welcomed Alistair Darling’s confirmation that he will delay a planned rise in fuel duty.
During the Budget, the chancellor verified speculation that he would delay the rise, after the price of crude oil hit just under $109 a barrel – a record high that is expected to continue.
Mr Darling said the rise will be delayed until October, with a further rise of 0.5p per litre in 2010.
Yesterday, the Federation of Small Businesses (FSB) made a last-minute plea to the chancellor, urging him to scrap the fuel duty rise altogether.
“A series of damaging tax rises and increases in red tape in the last year have totally undermined the government’s position with the UK’s 4.5 million-strong small business community,” said John Wright, the group’s national chairman.
Today, Simon Briault, a spokesman for the group, told startups they were pleased with the chancellor’s decision.
“We certainly welcome the decision, but the situation won’t go away,” he said.
“The cost of fuel is having a heavy impact on small businesses. I’ve spoken to florists and retailers who have said they can’t deliver because their fuel costs so much.”
He added that the delay was a temporary solution to an ongoing problem.
“There is always a worry that the fuel duty will make things worse. We welcome the delay but the situation is not going to get any better,” he said.
© Crimson Business Ltd. 2008
