More than 700 businesses have called on the chancellor to scrap a planned rise in fuel duty.
More than 700 businesses have called on the chancellor to scrap a planned rise in fuel duty.
The increase of 2p per litre, due to take place in April, will cost the haulage industry £170m, they say.
The increase of 2p per litre, due to take place in April, will cost the haulage industry £170m, they say.
Fuel duty went up by 2p a litre in October, and the average price of a litre of unleaded is now over 104p.
Fuel duty went up by 2p a litre in October, and the average price of a litre of unleaded is now over 104p.
In a letter to Alistair Darling, the companies said the higher fuel tax would make British hauliers less competitive than their European rivals.
In a letter to Alistair Darling, the companies said the higher fuel tax would make British hauliers less competitive than their European rivals.
The planned duty rise comes as oil prices hover near $100 a barrel.
The planned duty rise comes as oil prices hover near $100 a barrel.
"We are alarmed by the signals that the government appears to be sending to such a crucial industry at a time when the economy appears to be stalling," the letter said.
"We are alarmed by the signals that the government appears to be sending to such a crucial industry at a time when the economy appears to be stalling," the letter said.
The British Chambers of Commerce said the government must urgently reconsider the tax.
The British Chambers of Commerce said the government must urgently reconsider the tax.
"This is yet another tax on business which further erodes our international competitiveness," said David Frost, director general of the BCC.
"This is yet another tax on business which further erodes our international competitiveness," said David Frost, director general of the BCC.
A further increase in fuel duty of 1.84p is due in April 2009.
A further increase in fuel duty of 1.84p is due in April 2009.
The planned fuel tax increases come after protests at refineries against fuel tax levels in 2000 left Britain struggling for petrol supplies.
The planned fuel tax increases come after protests at refineries against fuel tax levels in 2000 left Britain struggling for petrol supplies.
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