"The possibility of road pricing combined with an increase in fuel duty has left smaller businesses genuinely worried that they will struggle to control costs," said the FPB's Chief Executive, Phil Orford. "Many of our members are concerned that delivery and supply costs will rise sharply. Given the evidence that other input costs are also on the rise, many will have no option but to increase their prices in order to remain profitable." 

The FPB is backing the Freight Transport Association's (FTA's) campaign to force the Chancellor to scrap his planned increase in fuel prices. VAT on fuel went up by 2p in October 2007, and the FPB believes that a further rise will harm many small hauliers and businesses using freight transport for deliveries and supplies. 

In addition, despite a recent Government u-turn on its plans for a system of nationwide road charges, funding is still being provided for local schemes.  

The FPB has joined the campaign against the Association of Greater Manchester Authorities (AGMA)'s proposed road-pricing scheme, announced in February. The AGMA has bid for £1 billion worth of pubic transport improvements from the Government's Transport Innovation Fund (TIF). An extra £2 billion would be raised separately and repaid by the money raised by the ‘congestion' charge.  

Under the scheme, there are two planned ‘cordons', one surrounding the city centre and another bordered by the M60 motorway. Motorists would face charges of up to £5 to drive into Manchester and out again during busy periods. They would receive an electronic tag to monitor their journeys on the 15 main roads leading into the city. 

Although the FPB agrees that congestion is a problem, it cannot be tackled simply by imposing financial penalties on road users, including many small businesses. Many in Manchester, for example, believe they have not been adequately consulted. The FPB agrees with the FTA that alternatives, such as incentives for environmental good practice, and relaxing delivery curfews, must be explored first. 

"I cannot believe that the Chancellor will be so naïve as to implement such a punishing tax hike. He should peg the cost of fuel to changes in the price of a barrel of oil instead," said Tracy Hoather of Sameday Plc, a courier firm based in Knutsford, Cheshire. "There is a strong green lobby at the moment, but businesses, in particular, can't really cut back on their energy use unless there are alternatives in place." 

She added: "The congestion charge absolutely terrifies me. There are different schemes being proposed for different towns and cities – how can they be administered? Will we have to register our whole fleet with every single authority across the country? I can't see how that could possibly work."