Fuel tax is due to increase by 23%, which equates to 12p a litre, in April, that is despite concerns it could have serious consequences for small and large businesses across the country. 

As the cost-of-living crisis and inflation continue to bite, research by the Federation of Small Businesses (FSB) showed that 54% of businesses blamed fuel as one of the main causes of rising operating costs.

And the fuel costs rise has been felt across Cheshire as well as the rest of the country. 

One Cheshire freight company we spoke to said that they "found it incredibly difficult to manage" whilst some also said that handling fuel costs here and in Europe, was increasingly difficult.  

Ian Mallon, managing director of Neon Freight, who is based in Holmes Chapel said: "We're struggling with it in a difficult landscape currently.  

"We handle european and international as well as national, and so our main struggle is the cost of fuel on mainland europe, so anything that makes our life that little bit harder, we're going to feel even more." 

The government announced in November that the temporary reduction in fuel duty would end in April, and according to the Office of Budget Responsibility (OBR), that would mean a 12p a litre increase in the current price. 

Fuel tax is set to increase 23% in April, making it harder and harder for companies to cope (Image - Wikimedia Commons)

However, given the current cost pressures that many logistics companies are facing in the county, a further price hike won't be helpful.  

One company we spoke to said that fuel prices were their biggest worry, and this was a view shared by Ian. 

"It is definitely an issue for us, and the cost of it makes life very difficult, but it has been that way for a while", he commented.

However, Ian does believe that the logistics industry is resilient and will keep going, despite the uncertainty around fuel prices and tax. 

He said: "We are quite used to it. Exports go up, fuels inflation and we have to control it, but we do get on with it, we have no choice." 

However, the FSB research found that 89% of companies' costs had gone up in the last year. 

FSB national chair Martin McTague said: "If fuel duty rises as planned, it would represent a missed opportunity to remove one of the obstacles that will hinder growth.

"But the Chancellor still has the power to rectify that mistake in next month's Spring Statement." 

The cost rises and fuel tax hike could pose a fundamental challenge to Cheshire businesses once they are implemented in April. 

READ MORE: Cheshire companies need to be positive but realistic

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