SME concern over looming fuel duty hike

(2 minutes to read)

FSB: ‘If fuel duty rises as planned, it would represent a missed opportunity to remove one of the obstacles that will hinder growth – but the Chancellor still has the power to rectify that mistake in next month’s Spring Statement’.

With the UK’s smaller sized firms facing the highest rise in fuel duty in 12 years, the government is being urged to intervene.

Fuel tax is set to rise in April by 23%, 12p a litre – the Federation of Small Businesses (FSB) says that this could have big consequences for SMEs, with research showing that 54% of firms who saw a rise in business expenses blamed fuel as one of the main causes.

The FSB is calling on the Chancellor to scrap the planned rise in the Spring Budget.

FSB National Chair, Martin McTague, said, “The Chancellor didn’t mention this fuel tax bombshell in his Autumn Statement, with the Government instead slipping it out in weighty official documents afterwards.

“If fuel duty rises as planned, it would represent a missed opportunity to remove one of the obstacles that will hinder growth – but the Chancellor still has the power to rectify that mistake in next month’s Spring Statement.

“Small firms are already struggling with a cost of doing business crisis, led by rampant inflation and high energy bills. This is the worst possible time to pile on extra taxes.”

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Martin added, “FSB is particularly concerned about the impact this will have on rural small firms – for instance, a cosy coffee shop in the southwest that relies on customers driving there if petrol becomes more expensive. Firms that rely on cars and vans for petrol, such as delivery services, tradespeople and farmers, would also bear the weight of the impact.

“The Government must support the small businesses that form the backbone of our rural economy. But now, many of these businesses face the harsh reality of downsizing, closing or changing their business models.

“Small businesses played a significant role in driving the economy and getting people into work after the 2008 financial crisis. The Government is making the right noises about the tools needed for them to get through and thrive – let’s not pull the handbrake on growth with a fuel duty hike.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Jaime Thorpe

By Published on 06th March 2023

limited, Contractors

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Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £105 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

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If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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