Soaring fuel prices are crippling small businesses in Scotland, it has been claimed.
Last week The Courier delivered a petition of 10,000 names to 10 Downing Street urging the government to introduce a fuel duty regulator, as promised before the general election.
Now, one of Scotland’s leading business organisations has heaped more pressure on Chancellor George Osborne before next week’s Budget.
A new survey by the Federation of Small Businesses found that nine out of 10 of their members said rising petrol costs are harming their firms and affecting sectors that are key to economic growth.
The FSB is now calling on the UK Government to reverse the planned 1p rise in fuel duty in the Budget next week and to introduce a fuel duty regulator.
A spokesman said that although they would welcome a cut in VAT on fuel in the Budget, it would still leave small firms vulnerable to fluctuations in crude oil prices.
Scottish policy convener Andy Willox said, “Scotland is suffering disproportionately due to the spiralling cost at the pumps.”
He added, “FSB members are determined to create and sustain jobs, grow the economy and sustain employment, but every penny spent at the pumps is money not getting spent elsewhere in the economy.
“Reversing the planned 1p rise and cutting VAT on fuel duty in the Budget next week will be welcome steps.”‘Huge pressures’Mr Willox said, “But to really stem these volatile prices the government must introduce a fuel duty stabiliser as it promised.
“Small firms are under huge pressures stabilising fuel prices will be a step in the right direction to really help small businesses in all sectors grow.”
Meanwhile, the Clydesdale Bank has urged firms to look at how they pay for fuel.
They say smaller firms can still benefit from fuel hedging, where they agree to purchase fuel at a set price.
Although this may be at an initially higher cost, it will not be affected by rising wholesale costs.
Treasury partner at Clydesdale Bank’s Dundee Financial Solutions Centre Lynne Anderson said businesses in Dundee that use even 50,000 litres of fuel a month should consider hedging.
She said, “Now is a good time for businesses to review their fuel purchasing strategy and budgets given the day-to-day price changes.
“Small- to medium-sized enterprises in particular can take advantage of this solution by committing to hedging smaller quantities of fuel than have traditionally been possible.”