THE Federation of Small Businesses has announced it fears that the 2p rise in fuel duty will hit many small businesses hard.

It says prices are already high at the pump and this will make it worse.

Many firms cannot take their produce or tools on public transport.

In rural areas such as Devon it is impossible to take their produce or tools on public transport. Even visiting clients has to involve using a vehicle. Customers need their car to get to the point of sale too.

David Shephard, FSB Devon Policy Chairman, said: "With other pressures, such as an increase in red tape coming in at the same time along with access to finance getting more difficult because of the credit crunch at the banks, this rise in duty is not at all helpful to small employers."