The FSB and other organisations are urging the Treasury to reduce the burden on hard-pressed motorists through a ‘fuel duty stabiliser’.
The basic concept of the ‘fuel duty stabiliser’ is that when oil prices increase, the stabiliser will allow the Government to reduce duty to a lower limit, and when oil prices fall, the Government will be able to raise duty levels to a higher limit. You can find more information about this issue here: Fuel Duty Briefing
Small businesses are suffering severe cash flow difficulties as a result of the VAT increase and the cost of fuel. The UK has the second highest diesel price in the EU and with VAT now standing at 20 percent, fuel duty is at a record high. On average in the EU a litre of diesel is made up of 51 per cent product price and 49 per cent tax, whereas in the UK the average is 38 per cent product price and 62 per cent tax.
To ensure that the Treasury hears from small business owners and people who will suffer from the rise in VAT please email your MP asking him or her to write to the Chancellor urging him to keep the promise of introducing a stabiliser. Don’t forget to encourage your MP to sign Early Day Motion 1252 (Fuel Duty Stabiliser).
Below is wording that you are welcome to use when contacting your MP.
First find your MP at http://findyourmp.parliament.uk/ – and if you use the below text remember to email the MP who represents the constituency where you live and to include your address.
Re: Fuel Duty Stabiliser & EDM 1252 (Fuel Duty Stabiliser)
I am extremely concerned about increases in fuel duty, which have hit the small business sector the hardest.
Already the UK has the second highest diesel price in the EU and with VAT now standing at 20 percent, fuel duty is at a record high.
Whilst in opposition, the Conservative party pledged to put in place a fuel duty stabiliser to ensure an automatic freeze on fuel duty increases and a reduction in duty to match any increases in VAT revenues from higher pump prices.
However, I am now severely disappointed that the Government has not delivered on the promises made prior to the election.
The International Energy Agency has reported that the stability of the global economy is under threat due to oil prices entering a ‘dangerous zone’ and found that the increase in fuel duty will cost OECD countries 0.5% of their combined GDP.
I would urge you as my MP to sign EDM 1252 and to put pressure on the Chancellor and the Prime Minister to introduce the fuel duty stabiliser as a priority.
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Andrew has been in the motor trade for over 20 years. What he enjoys most about his job is the team spirit and the dedication of his work colleagues. He also appreciates the teams input in the improvement of the company.
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