Transport taxes proposed by the chancellor will overshadow green incentives for businesses, a lobby group has warned.
The Forum of Private Business (FPB) said yesterday that taxes such as the 2p rise on fuel duty, due to come into effect in October, will threaten businesses already planning to go green.
It added that additional funding for local congestion charges could affect smaller hauliers and other businesses which rely on freight transport for supplies and deliveries.
Some businesses complained that although capital allowance, which allows owners who purchase new cars with low CO2 emissions to write off 100% of the purchase price of the vehicle, is being extended to five years, businesses won’t be able to claim back the additional fuel duty.
“Congestion charging really concerns me,” said Tracy Hoather, from haulage firm Sameday. “I can see every city having a separate scheme. That would be a nightmare for a company like ours, which delivers all over the country.”
The FPB’s chief executive, Phil Orford, said Hoather echoed the concerns that many of its members had over rising delivery and supply costs.
“Given the evidence that other input costs are also on the rise, many will have no option but to increase their prices in order to remain profitable,” he said.
© Crimson Business Ltd. 2008