Petrol Pump

The Federation of Small Businesses (FSB) has urged the Chancellor George Osborne not to raise fuel duties in next week's Budget.

Ahead of the Chancellor's Budget next week, the FSB said "affordable fuel has been a lifeline to those in rural areas". The vast majority (93%) of its members said cars are important to their business.

Mike Cherry, policy director at the FSB, said: “Businesses want to play their part in meeting the UK’s carbon reduction targets, including those in the transport sector. But for many, the routes to low carbon alternatives and fuel reduction simply aren’t available yet. Without providing an alternative, an increase in fuel duty will simply add pressure to small businesses at a time when they face rising costs from business rates, the National Living Wage, pensions auto-enrolment and changes to the taxing of dividend payments.

“Many small businesses rely on low input costs to create jobs and raise wages, and would struggle with increases in fuel prices. Maintaining fuel duty at its current rate would therefore provide a significant boost to small business confidence and stability.”