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Fuel duty 'should be halved'

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Fuel duty should be halved for some commercial bodies, one industry body has claimed.

According to the Forum of Private Business (FPB), the postponement of a two pence rise in duty does not go far enough.

It wants to see a 25 pence rebate per litre, calculated on the distance travelled against fuel purchased in the UK for firms operating vehicles of 38 tonnes or more.

The body believes that the fall in revenue from duty the government will experience will be more than offset by an increase in corporation tax due the business growth it would spark.

Nick Palin, the FPB's director of finance and administration, said: "While the postponement of the proposed two pence rise in fuel duty is welcome news for our members, the FPB would like the government to go further and actually cut VAT on fuel, instead of deferring the increase every six months."

Yesterday, the British Chambers of Commerce urged the government to confirm that the planned hike had been scrapped altogether, rather than simply put off.

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