Fuel duty hampers small firms, says pressure group

THE Federation of Small Businesses (FSB) has said that more of its members fear the impact of rising fuel prices than trade lost to severe weather.

A snap poll of 1,300 members showed that 24% of small firms said they had to close as a result of extreme weather. The majority of these put the cost of this disruption at up to £5,000.

However, a greater number (39%) argued that recent fuel duty rises was likely to have a major impact on their business, and the FSB said that the combination of both factors could put some firms on a knife-edge.

It is calling for the government to put in place its fuel duty stabiliser – a policy which freezes or reduces fueld duty if pump prices and VAT rates continue to rise – to avoid spiralling fuel inflation.

Richard Gregg, FSB Manchester North Cheshire Chairman and Stockport businessman said: “Heavy snowfall and severe weather has put a strain on already hard-hit small firms at such an important time for businesses.

“While the Government cannot control the weather, it can reduce the impact record fuel duty rates has on everyone, not just small businesses.”