High oil price 'damaging business'
May 19 2008
The high oil prices are causing problems for small businesses which would be exacerbated by the government's planned rise in fuel duty, it has been claimed.
Chris Hannant, head of policy at the British Chambers of Commerce (BCC), told Channel 4's News at Noon that the high price of oil means that the government has already taken what would have been the profits from the increase in fuel duty from VAT on fuel and tax on North Sea oil production.
He commented: 'We're calling on the government to abandon this proposed increase, because it will raise the cost for businesses across the economy at a time when the economy faces difficulty.'
In this year's budget the chancellor Alastair Darling put off raising fuel duty by two pence, but only until October.
Because of the increased pressures within the economy, the BCC believes that small businesses are already suffering from a decrease in consumer retail spending.
Chris Hannant, head of policy at the British Chambers of Commerce (BCC), told Channel 4's News at Noon that the high price of oil means that the government has already taken what would have been the profits from the increase in fuel duty from VAT on fuel and tax on North Sea oil production.
He commented: 'We're calling on the government to abandon this proposed increase, because it will raise the cost for businesses across the economy at a time when the economy faces difficulty.'
In this year's budget the chancellor Alastair Darling put off raising fuel duty by two pence, but only until October.
Because of the increased pressures within the economy, the BCC believes that small businesses are already suffering from a decrease in consumer retail spending.