North East economic recovery hindered by bill for fuel tax
Mar 15 2010 by Kerry Wood, The Journal
NORTH East businesses are being hit with a huge fuel tax bill that could damage the recovering economy.
Businesses say they are in effect punished for their distance from the London by having to fork out 74% more to transport their goods and services to other parts of the country.
The sheer distance from other locations means North East businesses pay £4.16 per tonne, compared to the capital’s £2.39 per tonne, making an overall fuel tax bill of £200m in the region.
These latest figures have been compiled by the North East Chamber of Commerce which warns the region will be put at a greater disadvantage if the Government pushes ahead with plans to raise fuel tax by a penny every year to 2013. Chamber chief executive James Ramsbotham said: “This is a stunning tax burden that our regional economy has to bear.
“Were we to pay tax per tonne at London prices it would save the region £78m annually.
“The Government has fixed an upward course for fuel duty which will heap an ever-increasing burden on this region as it fights its way of the recession. That mindset has to change.”
Alan Ferguson is the owner and executive chairman of Fergusons Blyth Limited and Fergusons Transport based in the North East.
