A TEMPORARY freeze on fuel tax highlighted in the budget statement has led a commercial vans website to call on continued reviews - insisting the fuel tax increases planned for the future could cripple many small businesses and have wider impacts on the UK economy.
Vansunited.co.uk, the UK commercial van-buying website, received thousands of pleas for support from its members following the last increase in November. In response, it undertook an awareness raising campaign communicating the impacts on the UK economy and calling for fuel subsidies for van driving small businesses.
The average UK price of diesel currently stands at 112.5p, increasing over ten pence since November, and is still increasing daily. Every two pence increase equates to a £108 million cost increase to the UK's Van drivers.
Manager of Vansunited Duncan Colman said: "In 2007 there was a 20 per cent rise in fuel prices -with the average cost of fuel increasing by ten pence since November. We appreciate the impact of the increases in crude oil and are asking the government to show some leniency and support the small businessman with a tax subsidy - this will both reduce the inflationary pressure on the UK and strengthen the country against economic fragility. There are approximately 4.1 million small firms in the UK and they are the backbone of the economy, employing around half of all private sector workers. Supporting these companies now will have massive impacts on the wider economic community."
Small businesses, the backbone of the UK economy, are responsible for 21 per cent of the UK's total business turnover making the commercial van driver worth over £35 billion to the UK economy. Over 38 per cent of small businesses rely upon vans (1.63 million businesses) and there are three million vans on the roads. The UK has the highest fuel tax in Europe yet, unlike haulage companies, there are no fuel subsidies available to the van driving small business community.
The price hikes come against a backdrop of escalating charges against the UK's van owning small businesses - in April 2007, the personal use of vans was deemed as private-hire and received an enormous 600 per cent tax increase - van owning small businesses have been pleading with the government for some level of support.
Mr Colman continued: "The rise in the price of North Sea oil will generate an extra £3 billion for the Treasury - which will be enough to fund a 6p cut in fuel duty. To support the UK's Van driving community we have created the Diesel Cap Dolls' who will be campaigning for fuel reductions and running a series of online initiatives - visit www.vansunited.co.uk for more details."
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