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John Bridge OBE, Chief Executive of Peterborough Chamber of
Commerce, said: “It’s not an exaggeration to say that some companies
could go bust under the strain of the increase in business rates,
fuel duty and the ending of transitional rate relief, which could
triple payments for some businesses.
“The Government is quick to make all
the right noises about helping businesses yet in reality it is
increasing costs left, right and centre. And what they don’t seem to
comprehend is that they are imposing a double whammy on businesses
on fuel because the VAT reduction which came into effect last
December was transferred to fuel duty, meaning that businesses could
no longer reclaim the amount affected so this is in effect the
second increase in four months.
“The German Government are giving
their road haulage industry a very significant package of benefits
yet our Government where we‘ve got the highest fuel duty in Europe
is increasing costs even more and making UK companies even more
uncompetitive. And what is the point in slashing VAT by 2.5 per cent
to encourage consumer spending on the High Street when you’re only
going to take it back again at the pumps?
“Furthermore Alistair Darling’s
decision to implement a two per cent rise in business rates this
year with a further three per cent increase over the following two
years is yet another incomprehensible hurdle for businesses –
especially at a time when RPI inflation is at zero per cent. With
the two per cent increase businesses will still be hit at a time
when they have restricted cash-flow and growth, and that doesn’t
make any sense in an economic downturn.
“It will be business that drives the
UK out of this recession so I would urge Government to find a way of
supporting firms with these extra costs, because right now their
actions are seriously contradicting their words.”
April 2009 -
Peterborough UK Community Website
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