Small businesses in the UK are "currently facing a toxic combination of problems", according to one expert.
Phil McCabe, media and publications officer for the Forum of Private Businesses, believes that "surging" oil prices and high fuel duty means many small companies are facing difficult times.
He said: "This has created an unstable situation for small businesses in the UK, many of which see little point in planning for the future, as they are unable to predict when oil prices will stabilise."
As small firms are unable to absorb price rises themselves, they have to pass on costs to their customers, he added.
This is likely to make them less competitive, presenting further problems Mr McCabe stated.
Recently, a poll by the Federation of Small Businesses found that 80 per cent of SME owners feel that increased fuel costs will make it harder for them to expand their firms in the next 12 months.
