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Fuel duty increase 'unjustifiable'

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The planned increase in fuel duty is "unjustifiable", one industry body has told the government.

Because of the rising cost of oil, the government has already received a tax windfall of £505 million from April 1st to May 16th, the British Chambers of Commerce (BBCC), states.

According to the body this is the same amount that would be raised by the two pence increase in fuel duty scheduled for October.

David Frost, director of the BCCC, said: "With the Treasury estimates on what it would bring in on fuel tax woefully out of line with reality, this £505 million windfall in less than two months must surely rule out the two pence rise scheduled for October. It is simply unjustifiable."

He added that the increasing cost of oil is already hitting people hard and the government must do something to help people out.

Earlier this week, the Federation of Small Businesses warned that government plans for flexible working could lead to an employment nightmare for small firms.


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