Business leaders have called on the Government to drop a planned increase in fuel duty.

Cadia, the business association for the Gatwick Diamond area, has launched a Not a Penny More campaign demanding a cut in transport taxes.

Chief executive Jeremy Taylor has written to Chancellor George Osborne to ask him to abandon plans to increase the price of fuel by 1p in April.

The campaign also wants Mr Osborne to introduce a fair fuel stabiliser in the Budget. Mr Taylor said: “We are lobbying the Government requesting that the increase in fuel duty is deferred, or preferably, cancelled. We have written to our local MPs and to the Chancellor of the Exchequer.”

The campaign has won the backing of local businesses and MPs.

Crawley MP Henry Smith said: “This is an important issue for small businesses. Prices at the pump in Crawley are as high as London. This has an impact on small companies in particular. I have written to the Chancellor to ask that he introduce a fuel stabiliser so when the price of oil goes up the amount of tax comes down. So far all the signs are encouraging. I am hopeful that the Chancellor will introduce measures to mitigate any rise in the price of fuel.”

Meanwhile a new survey has revealed that small businesses may have to lay off staff, freeze wages and reduce investment in new products and services if fuel continues to rise.

In a poll by the Federation of Small Businesses (FSB) of more than 400 small firms, 89% said the hike in fuel duty at the beginning of the year will cost them up to £ 2,000 over the next six months, on top of regular outgoings. The FSB is also calling for all future fuel increases to be scrapped until a stabiliser is put in place.

Trevor Constable, chairman of the Worthing and Adur branch of the Federation of Small Businesses, said: “The Government promised in opposition that it would put a fuel duty stabiliser in place, and it is clear that without such a measure the country s five million small businesses will be put on a knife-edge. It is vital the Government goes back to its pledge and puts this stabiliser in place. “

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