Business groups urge fuel duty U-turn

The Federation of Small Businesses (FSB) and British Chambers of Commerce (BCC) have renewed their calls on the government to scrap the rise in fuel duty in five weeks' time.

From 1 April, petrol will be subject to another two pence of tax per litre, in a move that has already been widely opposed by business groups.

"Fuel prices are hurting small businesses and their customers in every sector and in every area of the country," said Chris Glen, the FSB's transport chairman.

"Now is not the time for the government to be adding to their problems by increasing fuel duty. After a really tough year and several major tax increases, small businesses deserve a break."

However, environmental organisations say that fuel duty increases are vital to encourage more climate-friendly alternatives to road transport.

Speaking recently, WWF-UK's head of transport policy Peter Lockley said: "Investment in public transport would ease congestion on UK roads, which in turn would cut fuel use and CO2 emissions for hauliers. Cutting fuel taxes will just encourage more people onto our already over-crowded roads, and reduce the money available for cleaner alternatives."