With fuel prices climbing as high as £1.32 per gallon and Value Added Tax (VAT) now at a massive 20%, many small business owners are concerned for the future of their company.
Consequently, small business groups, including the Federation of Small Business (FSB) have spoken out and demanded that the British Government honours it’s pledge to introduce a fuel duty stabiliser as the cash-flow of small companies is being severely impacted.
The FSB has added that any future increases in fuel duty should be scrapped. They added that around 50% of the average cost of a litre of diesel is tax and that the UK has the second highest diesel price in Europe.
John Walker, the national Chairman for the FSB, commented:
“Small firms, such as the haulier and the taxi driver, will all be severely affected by this rise in fuel duty.”
In addition to this, with VAT having risen to 20% at the begining of January, around 70% of small businesses are expecting the 2.5% increase to have an adverse effect on their company.