Mr Dunning said that transport was the only industry to have seen large increases in taxation during the current recession, and claimed that “enough was enough”. Cumulative fuel duty increases would amount to 20% over two years if another increase planned for the forthcoming budget goes ahead.

The Minister said the further increase had been suggested by environmental interest groups in order to discourage unnecessary fuel use and respond to climate change issues. The RHA responded by saying that fuel is already sufficiently expensive to achieve this and, in fact, fuel costs are so high that some operators cannot afford to upgrade their vehicles to morefuel-efficient models.

Speaking out in support of the RHA, Jakes De Kock, marketing director at The Fuelcard Company, said: 'Fleet businesses are already taking every possible measure to be as fuel efficient as possible however operators are coping with a combination of rising prices and re-imposed VAT rate during a recession. These further tax hikes could be the difference between survival and ruin for some companies.'