Energy costs 'damaging UK's economic recovery'

High energy costs are damaging the UK's economic recovery, business groups have claimed, placing pressure on the government to address the issue.
The Major Energy Users Council (MEUC) and the Federation of Small Businesses have both told the government that the increase in business energy bills, along with the VAT rise, is harming companies and the UK's potential to recover from the economic downfall.

Andrew Bainbridge, MEUC chairman, said that it was concerned with the "lack of sensitivity" involving extra costs at a time when businesses are struggling to recover from the recession.

Recently the MEUC has created the Carbon Action Group to tackle the rise in fuel prices.

"The jump in petrol prices is part of the government's long-term aspirations to create a low-carbon future," he added.

And John Walker, of the Federation of Small Businesses, called it "unacceptable" that the government had u-turned on its manifesto promise of a fuel stabiliser.

He added that research had revealed that 40% of small businesses believe that the fuel increase will harm their company.

This week saw the launch of Fair Fuel UK, a campaign by the Road Freight Industry to encourage the government to abandon the next scheduled increase in fuel duty and establish a fuel equaliser to prevent future increases occurring.

Posted by Ruth Bradshaw

Source: http://www.uswitch.com