Dual tax blow slammed

THE NORTH West’s largest chamber of commerce today slammed the Government for a double tax blow on businesses.

A 2p hike in fuel duty was introduced today, while business rates are to rise 2% this year with a further 3% phased in over the next three years.

Greater Manchester Chamber, which has more than 5,000 members, says the timing of the increases is “totally wrong”, given that companies are already struggling to weather the recession.

Deputy chief executive Chris Fletcher said: “With the levels of public borrowing now soaring, obviously the Chancellor has little room to manoeuvre and the payback of this borrowing has to come from somewhere. However, there are better ways than blunt tax increases on business.

“Whilst recognising that the original increase was 5%, any reduction has got to be welcomed. But as the increase is based on the RPI figure and as this is currently at zero, questions should be asked about how the figures are calculated.

“The fuel duty hike was one of the many stings in the tail from last Autumn’s pre- budget report and comes into force at a time when businesses and other motorists can ill-afford it.”

Mr Fletcher fears higher taxation, which looks set to be a consequence of higher government borrowing, will “make things worse” and damage the economy’s recovery.