Fuel costs 'threatening small businesses'

More than 80% of small businesses say that rising fuel costs will curtail their growth over the next 12 months, according to a survey by the Federation of Small Businesses (FSB).

And almost 40% of the 9,000 firms polled said that they were likely to have to reduce their number of staff.

The FSB's national chairman, John Wright, said that small businesses were "reaching breaking point" and that without immediate action on fuel prices there would be "a major economic crisis".

"The UK's 4.5-million-strong small business community simply cannot cope with the cost of fuel rising at these rates. The problem is affecting every type of business in every area of the country," he said.

Wright called on the government to act by using above-expected revenues from North Sea oil. "Why can't they use this extra money to reduce fuel duty and ease the pain for the millions of small businesses that keep the UK economy afloat?"