Government must deliver promised fuel stabilisers
THE FSB has told the Government they must deliver on its manifesto pledge for a fuel duty stabiliser as record high fuel duty rates put small businesses on a knife-edge.
As the increase in VAT to 20 per cent took hold on 4 January, fuel duty also rose to a record high, putting further pressure on hard-hit small firms.
The UK has the second highest diesel price in Europe yet, on average, a litre of diesel is made up of 51% product price and 49% tax, whereas in the UK the average is 38% product price and 62% tax.
In real terms, fuel duty will rise by 1% above inflation each year from April 2011 to April 2014.
The FSB is concerned small businesses will not be able to sustain such high prices.
John Walker, National Chairman, FSB, said: “The country’s small businesses are not just hard-hit by the recent VAT rise, but also by record high fuel prices which has come at the most fragile of times. Small firms will all be severely affected by this rise in fuel duty.
“Unlike big businesses, they will have to pass the cost onto customers at a time when they already have to deal with the VAT hike.”
While In opposition, the Conservative Party promised to put a fuel duty stabiliser in place and the FSB has said it is ‘severely disappointed’ this pledge hasn’t been delivered.
The organisation believes future fuel duty increases must be scrapped and the promised fuel duty stabiliser must be put in place immediately.