THE FEDERATION of Small Business has welcomed fuel duty cuts announced in today’s Budget.

Emma Watts, development manager for the North Yorkshire region of the Federation of Small Businesses, which has 3,000 members, said: “We were waiting for action to relieve our members, particularly those based in rural areas, and to an extent it came.”

She said: “While we do not believe it goes far enough to incentivise job creation, the Fuel Duty Stabiliser announcement, so crucial to York and North Yorkshire, is great news.”

Seventy per cent of respondents to a recent FSB survey said that their car or van was crucial to their day-to-day operations, whether it was travelling to work or carrying out their work activities.

She said that FSB North Yorkshire along with North Yorkshire MPs had campaigned hard on the issue.

“We are pleased that the Government has decided to not only scrap the 1p increase and the fuel duty escalator, but also to reduce fuel duty by 1p immediately. This will give much needed help to tackle inflation, as well as stimulate growth.”

She also welcomed the extension of the Small Business Rate Relief for properties with a rateable value of below £6,000, “affecting most businesses in York and North Yorkshire.”

Andrew Palmer, regional director for the CBI, said: “This Budget will help businesses grow and create jobs. The Chancellor has made clear the UK is open for business.

“The extra 1p cut in corporation tax will help firms increase investment. Meanwhile, significant changes to entrepreneurs' taxation will rightly focus much-needed support on businesses with growth potential.

“Reductions in regulations on businesses and the promise of a faster planning system will provide relief to companies trying to take on staff and invest.

“Support for manufacturers through the Climate Change Agreements will help them manage energy costs, which is particularly important given that the Government is pushing ahead with a carbon price floor.

“Businesses and consumers will benefit from reduced fuel taxes, but the increased tax on North Sea oil and gas could be counterproductive, and will create uncertainty for future investment,” he said.