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Fuel costs being passed on

Fifty-two per cent of small businesses are already passing onto their customers increased costs incurred by rising fuel prices.

Of the businesses surveyed by Bibby Financial Services, 79 per cent of owner/managers said they were feeling the effect of increasing fuel costs on their business, with 35 per cent looking to diversify and grow their business in order to cope with higher prices. Twenty-six per cent are already implementing cost reductions by reducing how much time they spend on the road. Eighty-three per cent of owner/managers in the north of England cite rising fuel costs as the key transport issue affecting their business, 10 per cent more than in the south.

Says David Roberston, chief executive of Bibby Financial Services: “The fuel crisis is on everyone’s minds at the moment and has become a very public issue overnight. This survey gives a voice to the impact that heightened transport issues, particularly surrounding fuel costs, are having on Britain’s small and medium-sized businesses.

“There are many companies already carrying out and planning solutions to the problem of increased fuel costs, which is encouraging, but the majority of businesses are yet to take action. Owners and managers must take steps now to fortify their cash flow and reduce the risk of the fuel crisis on their business from being any greater than it already is.”

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