THE Chamber of Commerce Herefordshire and Worcestershire has joined fellow chambers, road hauliers and business members from around the country to write an open letter to the Chancellor of the Exchequer, urging him to scrap the proposed increase in fuel duty.

The Government plans an increase of 2p per litre on fuel duty in April, which chamber of commerce members claim is, "completely unwarranted" and could cost the haulage industry about £170 million.

The letter says the decision will severely damage the UK haulage industry, which is already battling against the high price of oil and a duty rise from October.

It says in order to remain competitive, chambers of commerce and their business members would welcome the chance to work with the Government to develop a pricing system which separates the way fuel tax is levied for cars and commercial vehicles.

Gary Woodman, the Herefordshire and Worcestershire Chamber's policy executive, said: "The message being sent from the Government to our logistics industry is particularly worrying.

"The ability for hauliers to compete with other European firms is looking increasingly threatened, especially considering the UK economy faces a slow down in 2008. The Government must urgently reconsider this unnecessary rise in fuel tax."

Hauliers say April's tax hike would cost £15,000 per vehicle per 100,000 miles.