The Federation of Small Businesses (FSB) has warned that the upcoming increase in fuel duty could have significant consequences for small firms.
Fuel duty is set to rise by 23% to 12p a litre in April. Research carried out by the FSB showed that 89% of firms have recently experienced a rise in the cost of running their business. 54% of firms who saw a rise in business expenses said fuel was one of the main contributors.
The FSB warned that the fuel duty hike could intensify the cost-of-living crisis. It has urged Chancellor Jeremy Hunt to scrap the planned rise in the upcoming Spring Budget.
‘The Chancellor didn’t mention this fuel tax bombshell in his Autumn Statement, with the government instead slipping it out in weighty official documents afterwards,’ said Martin McTague, Chair of the FSB.
‘If fuel duty rises as planned, it would represent a missed opportunity to remove one of the obstacles that will hinder growth.
‘Small firms are already struggling with a cost-of-doing-business crisis, led by rampant inflation and high energy bills. This is the worst possible time to pile on extra taxes.’