Fuel Card News Motoring Updates: Pressure mounts on Government to act on fuel duty

Pressure is mounting on the Government to listen to its MPs on scrapping the fuel duty policy and avoid further damage to the economy and the industry, the Freight Transport Association (FTA) has warned.

During the debate, which took place on 15 November in the House of Commons, the Economic Under Secretary to the Treasury, Chloe Smith, heard how high fuel prices have damaged businesses and communities, restricted economic growth, hurt motorists and exacerbated unemployment across the country.

MPs in some constituencies said hauliers and businesses are suffering because of increasing fuel costs in the EU and as a result they are struggling to remain competitive, citing evidence from the FTA and other organisations.

Conservative MP Caroline Nokes, who spoke during the debate, said: “I met this morning with the FTA who tell me that this (fuel price rise) has had a crippling effect on the logistics industry, whose business viability is determined by the price of fuel and for whom even the smallest rise makes a massive difference.”

The Forum of Private Business (FPB) has also written a letter to the Business Secretary Vince Cable highlighting the matter of struggling firms.

Phil Orford, the FPB’s chief executive, said: “Our members have seen a continued rise in the cost of doing business over the last year, and according to our latest survey, 92 percent of SMEs saw an increase in transport costs.

“An additional fuel duty increase in the current climate simply can’t be justified. Not only would significant tax hikes damage small firms further, it’s highly likely growth would be affected, with consumers having less money in their pocket to spend.” 

In other news, diesel car drivers are paying 7p per litre more than petrol car drivers, figures from the AA have revealed. 

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