FSB calls for action on fuel and energy bills

New figures from the Federation of Small Business (FSB) yesterday revealed rising morale across Scotland, but those confidence levels still lagged behind the UK average.

Nearly two-thirds of small firms north of the Border are still operating below capacity.

Andy Willox, Scottish policy convener for the FSB, said he was “heartened” to see that more small firms are planning to invest, with 16 per cent reporting intentions to do so.

“However, businesses’ investment and growth intentions are being undermined by spiralling energy and fuel bills,” Willox added. “We need more action in this area.”

Data within the survey was gathered prior to last week’s Budget, when the Chancellor cancelled a planned 3p hike in fuel duty that would have taken effect in September. The move was widely welcomed by the FSB and others.

Even so, the group is pushing for further “innovative thinking” on fuel duty, which makes up about 60 per cent of the price at the pump.

FSB Scottish spokesman Stuart Mackinnon points out that this is one of the highest taxation levels in the European Union, with every penny at the pumps representing cash not spent elsewhere in the economy.

“We also believe that the market isn’t operating well for our members in this area, despite the Office of Fair Trading (OFT) rejecting a full investigation into the workings of the UK road fuel market at the start of the year,” Mackinnon added.

The FSB is also supporting a Bill that would limit the use of automatic energy contract roll-overs for micro firms with less than ten employees. The FSB said these renewals often lock companies into more expensive agreements.

The survey found that fuel and utilities remain the biggest drivers of increased business costs. Meanwhile, fewer than one in five small Scottish firms approached their bank for  finance during the last quarter, pointing to continued strain in lending.

Confidence levels in Scotland remained in slightly negative territory at a balance of –1,  although this was an improvement up the –10 reading in the final quarter of last year.

Across the UK as a whole, the equivalent figure rose from -5.6 to +6.3.

The latest Scottish figure is also significantly lower than the +9 reported in the first quarter of last year.

• A new poll from reward scheme Nectar shows that 48 per cent of Scots would like to start their own business, with nearly half of those willing to work an extra day a week on top of their regular job to get their new venture off the ground.