More than a million tradesmen and businesses will see costs rise because of the change in the way fuel is taxed.

Private motorists will see no increase in pump prices when duty rises by 2p a litre on Monday, because VAT is being cut at the same time. Business users, who reclaim VAT, will not benefit from that reduction, but will have to bear the duty increase. The change will affect 4.7 million company cars, 2.5 million vans and 500,000 lorries and could cost traders up to £1 billion.

James Hookham, of the Freight Transport Association, said: “Not only does this hurt businesses directly, it also hurts the consumer, who will end up paying more to cover transport costs of items such as food, clothing and white goods. Christmas suddenly got even more expensive.”

The British Vehicle Rental and Leasing Association said: “This will hit everyone from the plumber who needs to get around in his van to haulage companies with 44-tonne lorries.”

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