Businesses face 'unstable situation'

The situation for businesses is now unstable, thanks to rises in the price of oil and higher fuel duty levels, it has been claimed.

Phil McCabe, a representative from the Forum of Private Businesses (FPB) believes that the rise in oil prices is creating a situation where a number of businesses now feel as though there is little reason to plan for the future.

"The UK is currently facing a toxic combination of problems due to surging world oil prices and high fuel duty in the UK," said Mr McCabe.

"FPB members are already reporting adverse effects to their business, saying they are struggling to pay for the inexorable rise in fuel prices."

Mr McCabe also noted that many companies are now in a position where they feel compelled to pass on price increases to their customers.

These findings follow a poll of over 9,000 owners of small businesses.