Fuel Price Rises Will Force Firms to Make Cuts

Fuel Price Rises Will Force Firms to Make Cuts

Small businesses will be under severe pressure to cut costs — including freezing pay and laying off staff — if fuel prices continue to rise, new research has revealed. A Federation of Small Businesses (FSB) survey of more than 400 small firms found that January’s 0.76p per litre fuel rise will force 26% of respondents to pay an extra £500 to £2,000 in fuel costs over the next six months. The research also found that three quarters of small firms said further fuel prices would reduce their profitability. A further increase of 1pence a litre is scheduled for April, although the Chancellor has said he will review this in the March Budget. The cost of a litre of unleaded petrol is now almost £1.30 because of high fuel duties, the January VAT rise and global oil prices. “The problem is th... »