Driving recruiters have condemned the chancellor’s increase on fuel duty in this week’s Budget.

Fuel duty is to rise by 2p per litre from September and then by 1p a litre above inflation each April for the next four years.

Bill Taylor, director at North East Workforce, told Recruiter that such an increase will hit his clients hard.

“The haulage industry has been hit already. This is going to make it worse. The price rises on fuel will increase the total expenditure of haulage companies.”

Adrien Bray, managing director at Innov8, adds: “It is a very irresponsible measure to take by the government. During a recession, any increase on tax that is going to hit business is going to have a detrimental effect.

“What we have seen is that margins have been eradicated. Transport companies are looking to jump ship to those agencies where there is no or little margin. Small haulage companies are finding it hard.”

James Hookham, policy director for the Freight Transport Association (FTA), which represents the logistic sector, says: “The logistics sector is the lifeblood of the UK economy, and rather than the transfusion we need, Alistair Darling has turned Dracula.

“Insolvency in the logistics sector has doubled in the last year and the number of HGV drivers looking for work has almost quadrupled. What more evidence does the government need that parts of the sector are on their knees?”