Chamber opposes fuel duty increase

Greater Manchester Chamber of Commerce’s Engineering and Manufacturing sector gave a firm “no” today (Wednesday 9 March 2011) to the planned implementation of the proposed 1p fuel duty increase planned for the Budget on 23 March.

Members of the Chamber’s Engineering and Manufacturing Sector Council discussed the impact of the fuel increase against a backdrop of already increasing raw material costs.
Richard Burslem of Wallwork Heat Treatment and vice-chair of the Sector Council, said: “We must send a firm “no” to government to prevent another increase in the costs of fuel. 

"Every price increase has an impact on input prices for manufacturing and will inevitably lead to an increase in output prices affecting the whole supply chain and eventually the consumer. 

"If the government really does mean what it has been saying over the last few days about putting enterprise first to promote growth, then here is a chance for it to do something positive and scrap the increase. 

"This is an avoidable cost increase as it is in the Chancellor’s hands whether or not it goes ahead.”

Deirdre McManus, Engineering and Manufacturing Sector Director at the Chamber, said: “The latest public sector finance statistics were better than expected and demonstrate that the Chancellor has scope to hold fuel duty if he wants to. The cost to the Treasury would be around £500million a year. This is not an excessive cost to the public purse, yet it would alleviate costs for all businesses that are having a knock-on effect for inflation and consumer confidence. The Chancellor could do an awful lot with very little.”
For further information about the Chamber’s Engineering and Manufacturing Sector, visit: www.gmchamber.co.uk/engineering-and-manufacturing