Used car dealers are urging the chancellor to ease the financial burden for the motorist and boost consumer confidence by freezing fuel duty in next Wednesday's Budget.

In a survey of HPI's customers, 82% of respondents echoed the Society of Motor Manufacturers and Traders' call for “positive government action” and a freeze on fuel duty.

46% of respondents also felt that a freeze on Vehicle Excise Duty was a priority.

39% are also looking for financial support from the Government to help stimulate growth.

However, only 26% of dealers thought the scheme should be re-instated, despite its success in 2009/2010.

69% of those surveyed confirmed that the VAT rise had damaged their business, of those 29% say it has had a dramatic negative impact.

A further 19% said that although their business had not been affected by the VAT change, they do think this will change in the longer term, resulting in a fall in profits (70%) and lack of new car sales (45%).