A SHEPPEY haulage firm may be forced to close if the Government's plan to increase fuel tax goes ahead.

Mike Presneill, a director of Presneill Tipper Contractors Ltd, says the increase could put the company in a position where it would not be making profit.

Representing an organisation called British Hauliers he and other hauliers met with the Treasury's economic secretary, John Healey to discuss the implications of this rise.

Chancellor Gordon Brown plans to raise tax on motor fuel by 1.92 pence a litre in duty on September 1. This would mean motorists would be paying over half on tax alone.

Mr Presneill, who runs the family business in Brielle Way, Sheerness, said the rise is “crucifying the industry”.

He said: "As a company we use 25,000 litres a month, but to pay that amount of money is soul destroying."

Gordon Henderson, the Conservative Prospective Parliamentary Candidate, says he fears that Swale will see another fuel protest bringing similar chaos to four years ago.

He said: "Local hauliers are at their wits end. Many are fighting for their survival. British hauliers already pay some of the highest fuel prises in Europe and they dread September."

Mr Presneill, who lobbied the Government during the protests in 2000, employs 15 people from Sheppey and Sittingbourne and says he must consider whether to continue his business after 25 years.

"Other haulage companies all over the UK are going through exactly the same thing and they've been going longer than I have."

He also met with Damien Green, the Shadow Secretary of State for Transport along with Mr Henderson to brief him on the difficulties facing their industry.

Sittingbourne and Sheppey MP Derek Wyatt would be surprised if there were more strikes.

He said: "We are fully aware that if the increase does go ahead there may well be strikes and road blockages, but I would be very surprised if they do it again. Clearly the hauliers are in pain."

Mr Presneill added: "We will continue to bring the fuel tax issue to the fore-front and make sure the right people know how this will effect all hauliers in the country."