Responding to the announcement that the Consumer Prices Index (CPI) remains at 2.4%, above the Government’s 2% target, and a rise in the price of petrol to £1.27 a litre, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said:
“Road transport is fundamental to the success of the UK’s 5.7 million small businesses. The surging fuel price should give policymakers pause for thought as we start to look ahead to the Budget.
“A fuel duty freeze in recent years has helped spur growth among small businesses, nine in ten of which say cars are important to their firms. Two thirds say van transport is important to business success – half say the same of lorries.
“The current fuel duty rate of near 60p a litre already looks steep. With small firms struggling to absorb higher business rates, wages and pension contributions, the last thing they need is fresh tax hikes in the autumn.”