FTA warns of cost to business of 'smash and grab' fuel tax rises
Thursday 30 September 2010 Back to Blog
The government's upcoming increase in fuel duty could damage businesses that use van contract hire, it has been suggested.
Industry body the Freight Transport Association (FTA) has accused the government of adopting a "smash and grab" approach to fuel duty and warned that the extra cost it could place on businesses may have disastrous effects.
October 1st will see the second of three one pence per litre duty rises on fuel during 2010/11, adding an estimated £125 million of costs to the freight industry.
"Successive, above inflation tax hikes since 2009 mean the freight industry is shouldering a disproportionate burden in narrowing the public sector deficit," said the FTA's chief economist Simon Chapman.
"With another rise due in January and above inflation rises set for the next three years, many businesses hit hard by the recent recession will feel like they are on borrowed time."
According to the AA, the UK has the second-highest diesel price in Europe.