Fuel stabliliser only way to beat rising fuel prices

By Chris Torney

The Federation of Small Businesses (FSB) says a fuel duty stabiliser is a simple way to help Britain’s smaller firms beat petrol price hikes.

The organisation has hit back at claims that a stabiliser – which would cut duty when oil prices rise, and increase tax when they fell – would be too complex to implement.

Rising petrol prices are having a disastrous effect on businesses which rely on vans and other vehicles.

John Walker, the FSB’s national chairman, said: “Critics have said that the fuel duty stabiliser is too difficult to introduce. The FSB does not agree. We know that high fuel prices are having a huge impact on our members, hampering growth and in turn the economy at large. It is vital we see action now.

“A fuel duty stabiliser would give the UK's five million small businesses the certainty and stability they need to factor in fuel costs to their business plans. It is unacceptable that the government has not delivered on its pledge and now says it is too complex. A fuel duty stabiliser can be easily introduced and must be put in place. Without it, small firms are just going to be left simply trying to survive.”

FSB research showed that rising fuel prices and uncertainty over costs would lead small businesses to increase prices, freeze pay or even make redundancies in 2011.

photo: didbygraham