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Increased train fares could put pressure on staff to ask for more wages says an industry body.

The Federation of Small Businesses (FSB) says these increased costs for the SME could be passed onto the consumer.

The reaction comes as above-inflation fare rises have been announced for 2008.

The Association of Train Operating Companies said cheap day returns and long-distance open and advance fares would go up by an average of 5.4 per cent from 1st January.

Employees who use trains to get to meetings are not always able to book train tickets in advance to make travel savings.

This occurs as arrangements are often made at the last minute, claims the FSB.

Matthew Knowles, spokesperson for the FSB, says: 'It varies between train companies but some are not exactly forthcoming in helping you get the cheapest fare.'

He adds that flexible working arrangements allowing employees to avoid travelling may not be an option for SMEs looking to work around the price increases.

Not all SMEs can provide technology to their employees which would allow them to work from home, he concludes.

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