Staff shortages, fuel costs and price rises are squeezing Highland Perthshire businesses, leading to cuts in activity - and in some cases closure.
Aberfeldy Taxis told customers it had taken the decision to stop taking short distance fares in the town.
“I am very sorry that due to increasing costs I have had to take the decision to decrease the hours that we are working,” taxi fleet owner David Macdougall explained.
“Unfortunately it is no longer viable to cover short distance journeys within Aberfeldy. We hope this is just a short term measure.”
Mr Macdougall told the PA that “something had to give”.
He added: “Unfortunately the council set our meters. A fare review is underway by the council but, as of yet, I’ve no idea when the results will be known.
“We are still only getting the same fare as we were getting 10 years ago, yet fuel has risen astronomically.
“Our average fuel bill per week used to be £220, we are now paying roughly £80 per week more in fuel, so we need to do a lot more £3.50 fares to cover that.
“The cost of starting and stopping and the time it takes to do a town run just doesn’t pay.
“Thankfully the school contracts help to cover the costs, but it still eats into your profit.”
National figures show fuel costs alone have increased 35 pence plus VAT per litre since January. On March 23, in the Spring Statement, a five pence per litre cut in duty was made.
But the fuel duty move failed to ease pressure as retailers declined to pass on the savings to vehicle users.
The latest RAC figures report an average diesel cost of £1.77 a litre.
The cost of fuel in Perthshire gets higher in rural areas where competition is low.
Pitlochry’s BP garage was asking 165.9 a litre for unleaded and 184.9 per litre of diesel on Saturday.
Howard Cox, founder of FairFuelUK, said: “In FairFuelUK’s survey, over a third of respondents said they are having to cut back on driving.
“Our latest survey of opinion shows the eye watering pump prices... are forcing motorists to change their driving routines. Even driving to medical appointments and carrying out voluntary work are being affected because of profiteering unnecessarily sky high pump prices.”
Craig Mackinlay MP, chair of the Fair Fuel APPG for Motorists and Hauliers, said: “With the highest fuel prices ever recorded and other cost of living pressures coming into view, it is little wonder that the public are having to make tough decisions on personal finances with car use being minimised.
“The car offers flexibility, independence, and freedom. The Chancellor needs to offer relief and it is in his hands to do so, else communities will suffer.”
A family-owned taxi firm in Pitlochry recently had to close.
Sadie Robertson, owner of SR Taxis Pitlochry, told the Perthshire Advertiser it is the end of an era: “We have operated in Pitlochry as a family business for over 20 years and pre pandemic had four cars on the road.
“A great many factors have contributed to our decision to close the business but, put simply, without drivers we just cannot operate.
“Rising fuel costs and no increase in taxi fares for 10 years also have a financial impact.
“We believe driving around our beautiful area is one of the best jobs going.”
The high cost of living is biting families all over Perthshire who face soaring energy costs and interest rates.
And no employment sector has seen salary rises matching the cost of living.
New research from Reed has revealed that despite the increase in interest rates, the cost of living and energy prices, salaries in Scotland are not keeping up.
A Highland Perthshire charity says the UK Government has missed key routes to help people through the cost of living crisis, now and for the future.
Christians Against Poverty (CAP) Debt Centre in Highland Perthshire manager, Angela Hanvey, said: “The Chancellor said in the Spring Statement that he wants to help people with rising costs but the announcements do very little to help those on the lowest incomes.
“While we welcome the change to the national insurance threshold, which will ease some of the pressures on low income families, and an extension to the Household Support Fund, the other announcements made recently will have little or no impact.
“The Chancellor said this was the best way to help working people through the tax system, but that is just one of the mechanisms the UK Government has available to them.
“We are deeply disappointed that the Chancellor didn’t listen to calls from across the UK asking for benefits to be uprated by seven per cent in April.
“Doing this would have provided targeted support to people here in Highland Perthshire on the lowest incomes who are being hit the hardest by the cost of living crisis.
“The Chancellor has missed an opportunity here to provide a longer-term fix, ensuring the social security system is linked to the real costs people face. Unfortunately, there was so much the Chancellor could’ve done but didn’t.
“The announcements ignored people in the toughest situations - people unable to work because of disability or ill-health, people with caring responsibilities and renters.
“We know that people in Aberfeldy and the surrounding area are already struggling, many are having to make impossible choices and go without, not even able to afford the essentials.
“We fully expect without the right type of Government support that many more people on low incomes will be forced into destitution and serious problem debt in the months and years to come.”
CAP Scotland can assist anyone struggling with the current situation.
Call 0800 328 0006 or visit the website capscotland.org
