FPB says economy unsustainable for small businesses
Jun 27 2008
FPB says economy unsustainable for small businesses
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There is a 'toxic combination' of problems facing small firms in the UK, according to the Forum of Private Businesses (FPB).
Phil McCabe from the forum explains that 'surging' oil prices and high fuel duty have created an 'unstable situation' for SMEs.
He comments: 'Many [SMEs] see little point in planning for the future, as they are unable to predict when oil prices will stabilise.'
The FPB reports that a number of their members are already having problems coping with high fuel costs as they cannot afford to absorb the cost themselves and are therefore being forced to pass the increases in prices onto customers.
Having to do this makes small firms less competitive, McCabe explains.
The Federation of Small Businesses has recently revealed in a survey that rises in fuel costs are already stifling the growth of UK firms and the economy.
In a poll of some 9,000 SME owners, more than 80 per cent revealed that increasing fuel costs will prevent them from employing more staff or growing.
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