The announcement that the government is to postpone the planed two pence increase in fuel duty is welcome news, but it does not go far enough.
According to David Frost, director-general of the British Chambers of Commerce, the chancellor should go further and scrap the hike altogether.
He said: "Businesses are being pushed to the absolute edge by the painfully high price of petrol at the pump, with many firms left with no choice but to pass on extra costs to the hard-up consumer."
The proposed increase no longer serves its purpose as spiralling prices have driven down demand and given the government a multi-million tax windfall, he added.
The chancellor, Alistair Darling, stated that the move will help motorists and businesses during the current period of economic difficulty.
Yesterday, the Forum of Private Business pointed to data from the Small Enterprise Research Team which suggests that the credit crunch is going to get worse before it gets better.
