Small UK firms have to face a “toxic combination” of problems, according to the Forum of Private Business (FPB).

Phil McCabe from the forum explains that “surging oil prices and high fuel duty have created an unstable situation” for SMEs.

“Many see little point in planning for the future, as they are unable to predict when oil prices will stabilise,” he said

The FPB reports that a number of their members are already having problems coping with the rise in fuel prices as they cannot absorb the cost themselves and are therefore passing the increases on to their customers.

Because small firms have being forced to do this, it makes them less competitive, McCabe explained.

In a recent survey, the Federation of Small Businesses revealed that the rises in fuel costs were already stifling the growth of UK firms and the economy.

In a poll of around 9,000 SME owners, over 80 percent of them revealed that fuel costs will prevent them from employing more staff or growing this year.

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