Action needed on fuel costs

It is all very well for David Cameron to insist he wishes to share the pain of fuel price hikes, but such a soundbite is likely to be greeted with a hollow laugh by business people who are doing their best to cope with a swingeing 20 per cent increase in their costs, especially given that every additional penny they are having to find helps fill the depleted coffers of the Treasury. Between fuel duty and the new 20 per cent VAT rate, the Government takes approximately 81p of the cost of every litre.

We forget at our peril that such economic recovery as exists remains fragile and fraught with potential risks. Against such a backdrop, firms fighting to stay afloat – and keep their employees in work – need to keep their costs uder strict control, not see them increase relentlessly and in a manner over which they have no influence.

Nor should we underestimate the effect of fuel costs on the fortunes of rural areas, where, of necessity, both families and businesses are more reliant on their own transport, whether it be to access essential services such as education and health, or engage in commerce. Those who live and work in the country have no choice about travelling to obtain what they need, and the price they are forced to pay for fuel puts increased pressure on communities where there is already ample evidence of people struggling to make ends meet.

Mr Cameron, a savvy politician, would do well to remember that the only time Tony Blair fell behind in the opinion opolls during his first term as Prime Minister was during the protests over fuel price rises a decade ago. In opposition, Mr Cameron made it a manifesto pledge to introduce a fuel duty stabiliser to protect motorists and business from fluctuations in oil prices. With only weeks to go before the Budget, the Prime Minister needs to think hard how he can offer some comfort; the survival of businesses on whom economic recovery rests demands it.