Record fuel prices are harming economic growth and job prospects

Statistics released by the FSB last week show that the soaring costs of fuel are already having a big effect on the economy by slowing down growth and employment.

In the FSB survey of over 9,000 small business owners, over 80% said that fuel costs are likely to make it more difficult for them to expand their business and hire more staff in the next 12 months. Nearly 40% said that fuel costs would make it likely that they will have to reduce staff numbers in the next 12 months.

Given that small companies are responsible for creating half of the UK's GDP, the FSB are understandably concerned by the survey results.

FSB National Chairman, John Wright, said:

“Small businesses are reaching breaking point and if something is not done about rising fuel prices very quickly then we will have a major economic crisis on our hands.

“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.

“The most frustrating thing is that the government can do something about it. Its estimate of the cost of North Sea oil in the last Budget was well below the actual cost, which means that tax revenues have been well above expectations. 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?”