Fuel duty and minimum wage rises today

Freight Transport Association chief economist Simon Chapman said that successive, above -inflation tax rises on fuel since 2009 meant that the freight industry was shouldering a “disproportionate burden”​ in narrowing the public sector deficit.

“With another rise due in January and above-inflation rises set for the next three years, many businesses hit hard by the recent recession will feel like they are on borrowed time. The ​price of oil is the highest it’s been for three months and is set to rise further as we come into the autumn peak period of oil demand.”​

It was particularly frustrating that tax raised from fuel was not being pumped back into improving the UK’s transport infrastructure, said Chapman.

“For every £1 of tax raised from road users, only 22p is currently spent on the road network. ​If the government persists with the strategy of above-inflation rises in fuel duty, it should ringfence the element that exceeds inflation and invest it in those road and rail networks in most urgent need of improvement.”​

National Minimum Wage​

Meanwhile, the GMB union welcomed today's rise in the National Minimum wage, which has increased from £5.80/hour to £5.93 for staff aged 21 and over, from £4.83 to £4.92 for workers aged 18 to 20 and from £3.57 to £3.64 for workers aged 16 to 17.

GMB general secretary Paul Kenny said: "The National Minimum Wage was the crowning piece of legislation of the last Labour government and this increase for 2010 was put in place before the general election. ​

"It is essential that the electorate keep up the pressure on the Tory-led government not to dilute this essential protection for ordinary workers and their families."​

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