Businesses call on Chancellor to abolish fuel tax increase

The Government has come under pressure to abandon its plans to increase fuel tax after receiving a letter of protest signed by more than 700 businesses from across the UK.

Fuel duty is scheduled to rise by 2p per litre from April this year; an increase that experts say will cost the haulage industry around £170 million.

Those in the transport sector say they are now struggling to compete with their European rivals as a result of the rising cost of fuel in Britain.

The letter, addressed to Chancellor Alistair Darling, claims that smaller hauliers are ‘likely to be the worst hit as they will find it difficult to pass on the extra cost to customers.’

‘The logistics industry is critical to the UK economy yet the tax system is making British hauliers uncompetitive,’ the letter said.

‘As an immediate measure we urge you to scrap the 2p increase scheduled for this April.’

Despite pressure from the business community, the Treasury has shown no signs of retreating on its controversial tax rise.

The proposed increase will send ‘the right environmental signals in [the] fight against climate change, while continuing to fund vital public services,’ a spokesperson for the Treasury said.