More pain at the pumps as fuel duty rises by a penny

DRIVERS face a rise in fuel costs today when a planned government fuel duty increase puts another 1p on the cost of a litre of petrol and diesel.

The Freight Transport Association (FTA) warned that Whitehall's "smash-and-grab approach" could put many struggling transport firms on the ropes.

Fears that some firms could go out of business were also expressed by Robert Matthams, founder of Shiply.com, which represents more than 17,500 UK transport firms.

Mr Matthams said: "It means higher overheads which could force some of the smaller firms - already teetering on the edge - to reduce staff, cut wages or even close down all together.

FTA chief economist Simon Chapman said: "Successive above-inflation tax hikes since 2009 mean the freight industry is shouldering a disproportionate burden in narrowing the public sector deficit."