Motor industry lobbies government on fuel tax

British business and motor industry leaders have called on the government to acknowledge the impact of rising fuel prices and scrap the 2p per litre fuel duty increase planned for October.

The Freight Transport Association has released a statement on behalf of groups including British Association of Removers, British Chambers of Commerce, the Confederation of Passenger Transport, the Freight Transport Association and the National Farmers Union.

It claims that high fuel costs are disrupting industry transport budgeting, planning and management.

"This increase in transport costs must inevitably be reflected in end prices for consumers, generating a key and unwelcome ingredient in rising inflation," it adds.

It also claims that the government does not understand the severity of the situation and has failed to tackle the problem.

Earlier this week, the Association of British Insurers stated that insurance providers uncovered 24,000 fraudulent motor insurance claims last year, worth a total of £260 million.
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