Nearly 40% of small firms expect to make job cuts as a result of higher fuel costs, according to a new poll.

The poll, from the Federation of Small Businesses (FSB), found that 80% of respondents said that rising fuel prices would make it difficult for them to expand their business in the next year.

John Wright, chairman at the FSB, told Vanessa Houlder at the Financial Times: “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.”

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