Redundancies expected if fuel costs rise

Results of a survey carried out by vehicle leasing company Lex reveal that over 34 per cent of financial directors, controllers and chief financial officers expect redundancies if fuel prices hit £2 a litre.

In the past month, diesel prices have risen by their highest margin this century and are now almost 14p per litre more expensive than petrol.

High oil prices, breaking through the £60 per barrel mark, have also fuelled a near-record rise in petrol prices.

Nationally, unleaded prices have risen to a record average price of 116.9p per litre in the past month. Diesel prices have risen to a record average of 130.3p per litre.

The survey also revealed a level of dissatisfaction from financial directors with the timescales that the government has attached to the Budget's recent emissions-based taxation changes.

With the changes due to take affect in April 2009, almost a third felt that they had received adequate notice from the Government to implement the necessary changes to their business vehicles.

Some 53 per cent of those surveyed also stated that implementing changes brought about by the new pieces of government legislation, be it as a result of the corporate manslaughter act, corporation tax/capital allowances and CO2-based vehicle taxation had placed a strain on their business.

Lex managing director, Jon Walden, said: "The Lex/YouGov survey firmly illustrates the pressure that UK businesses are feeling as a result of rising fuel costs, and in particular the price of diesel.

"As a company that specialises in vehicle leasing for UK businesses, Lex has established the 'Lex Momentum' consultancy arm which is providing strategic assistance to businesses in these challenging times on reducing costs and advice on low-emitting vehicles."