The Federation of Wholesale Distributors (FWD) is urging Chancellor George Osborne to scrap the increase in fuel duty planned for next week’s Budget and is backing Labour’s call for a reduction of the VAT on petrol and diesel.
FWD member companies supply hundreds of thousands of small retail and catering businesses through a network of delivery vehicles and cash and carry depots, and believe that further rises in the cost of fuel will impose a disproportionate burden on both wholesalers and their customers.
Chief executive James Bielby said:“Raising duty above inflation will create further challenges for the businesses we supply, many of which are already operating on tight margins, and we have asked the Government to listen to the many voices which are calling for a halt to the planned duty rise.
“Mounting distribution costs would disadvantage independently-run local stores at a time when consumers are looking to reduce their own fuel consumption and can’t afford to make the long journey to out-of-town supermarkets.”
Bielby welcomed shadow chancellor Ed Balls’ call for a reversal of last year’s VAT increase on fuel. He said: “Cutting the cost of distributing food and drink and other essentials into the heart of towns and villages is absolutely the right move for a Government that believes in the value of strong communities.
“Our members have made effective efforts to cut their fuel consumption by using highly efficient vehicles, educating drivers, planning optimum journey routes and minimising road miles, and rises in VAT and duty are simply a tax grab which does not recognise the environmental benefits these measures have brought.”
Source: The Federation of Wholesale Distributors (FWD)
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