Nearly a quarter of small businesses are having to make cutbacks in spending as a direct result of increased fuel costs, new research has shown.
The figures, from Enterprise Rent-A-Car, show rising fuel prices are taking their toll on the UK’s small business. Despite chancellor Alistair Darling’s decision in April to delay fuel duty increases until October, the average price of petrol has risen by 12% (14p per litre) and diesel by 17% (23p per litre) since the beginning of 2008.
As a result, small businesses are rarely opting to meet with clients face to face. According to Enterprise’s research 26% of small and medium sized enterprises said they travel to see their clients once a month or less – a trend Enterprise says is directly attributable to the increased in fuel costs.
Rob Ingram, director of business development at Enterprise Rent-A-Car commented that the increasing cost of fuel has been a “major concern” for most businesses in the UK for a while, with small firms now really feeling the pinch.
“These firms are cutting costs and changing the way they work to meet the challenge, but there is unlikely to be any dramatic drop in fuel prices anytime soon. This means SMEs need to look at long term solutions to tackle the issue.
“The key has to be effective planning and ensuring that any business travel impacts don’t impact on their service to customers. There will always be a need to get from A to B, but using more efficient vehicles and planning journeys more effectively can have a huge impact,” advised Ingram.
© Crimson Business Ltd. 2008