The survey conducted by the Federation of Small Businesses (FSB) found that 55% of small firms out of the 1,200 surveyed are operating below capacity and do not expect any growth this year.

The rising cost of operations was confirmed by a record 87% of respondents compared to the same period last year, with 60% of businesses citing fuel as the biggest increase, 58% utilities, and 27% taxation.

The FSB stated that other areas which businesses stated were contributors to the higher outgoings were input with 48% of respondents pointing to labour costs.