Government must put in place its promised fuel duty stabiliser
In a statement, the FSB said that the Government must deliver on its manifesto pledge for a fuel duty stabiliser as record high fuel duty rates put small businesses on knife-edge.
In opposition, the Conservative Party promised to put a fuel duty stabiliser and the FSB has expressed its disappointment that it has not delivered on this pledge.
In real terms, fuel duty will rise by 1% above inflation each year from April 2011 to April 2014. So, the FSB is concerned small businesses will not be able to sustain such high prices.
In response, the FSB calling for future fuel duty increases to be scrapped and for the promised fuel duty stabiliser to be put into action immediately.
John Walker, national chairman, Federation of Small Businesses, 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, such as the haulier and the taxi driver, 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.
'It is imperative the Government acts now and introduces the stabiliser to avoid a relentless flow of fuel duty increases that simply put small firms on a knife-edge.'