Scottish firms in fuel duty plea

Published on Sunday 20 January 2008 21:01

SCOTTISH Chambers of Commerce joined hundreds of businesses across the UK yesterday to urge the government to scrap a planned 2p a litre increase in fuel duty from April.

A letter to the Chancellor Alistair Darling, signed by 400 businessmen and women, warned British hauliers are finding it increasingly difficult to compete with their European rivals because of the level of fuel taxes in this country.

"The new rise will only compound the problems, with many smaller hauliers likely to be the worst hit as they will find it difficult to pass on the extra cost to customers," the letter stated. "The logistics industry is critical to the UK economy yet the tax system is making British hauliers uncompetitive.

"We are alarmed by the signals that the Government appears to be sending to such a crucial industry at a time when the economy appears to be stalling.

"As an immediate measure, we urge you to scrap the 2p increase scheduled for this April," added the letter, which warned that the price increase could cost the haulage industry 170 million.

Liz Cameron, chief executive of Scottish Chambers of Commerce, said: "The message being sent from government to our logistics industry is particularly worrying.

"The ability for hauliers to compete with other European firms is looking increasingly threatened, especially considering the UK economy faces a slowdown in 2008.

"The government must urgently reconsider this unnecessary rise in fuel tax to protect hauliers and businesses who use the roads on a daily basis. This is yet another tax which further erodes our international competitiveness."