Gordon Brown urged to scrap fuel hike

The Forum of Private Business Chief Executive Nick Goulding warned Mr Brown that in the current climate increasing fuel duty would have severe consequences for countless small to medium sized businesses.

"Only in July we carried out a poll which found that 67 per cent of businesses believed an increase in fuel duty would cause problems for their firms,' he said. "The situation is much worse now. This month we have seen the average price for a litre of unleaded hit a four year high of 81p. Moreover it is strongly expected petrol prices will increase again by around 2p a litre as a result of crude oil prices surging to a 21-year high last week. The FPB calls on Mr Brown to see sense and abandon all plans to increase fuel duty. Small businesses are suffering enough pain at the pump already."

The Managing Director of Same Day PLC, a Cheshire based courier firm, Gary Hoather gave his 100 per cent backing to the FPB's demand.

"We are already having to raise charges next month because of fuel prices,' he said. "Any further fuel duty increases will have a serious and negative affect on our business. It will immediately put jobs at risk. Many firms in this industry use self-employed drivers and can operate for less. They will be able to artificially keep prices low, which won't be an option for us. Fuel is expensive enough in the UK. It is absolutely ridiculous to even think of increasing it further. Gordon Brown must listen to business' concerns and dump this increase."

Mr Gouldling said an increase in fuel duty would act as a double whammy as VAT would also go up.

"The small business community is becoming increasingly anxious,' he said. "These anxieties are only being heightened by warnings from organisations like the AA which is saying petrol could hit £4 a gallon or 88p a litre in the next few months. It should not be forgotten that UK petrol prices are among the highest in Europe. This is primarily down to the huge amount of tax we pay on petrol. At the moment it is a massive 73 per cent of the total cost."