The rising cost of fuel has been blamed as a major factor in the failure of more than 4,500 small companies in the first quarter of 2008.

The first three months of the year has seen the first increase in business failures for over 12 months.

Data from Experian revealed that 4,798 businesses failed during the first quarter of 2008, up 8.5% on the previous year.

“In any climate, small businesses cannot afford to pay out an additional £1,000 each year towards fuel – this amounts to £1.6 billion extra across the van-driving business community, which is ludicrous given the current state of the UK economy,” said Duncan Colman, manager of Vansunited.

“We appreciate the impact of the increases in crude oil and are asking the government to show some leniency and support to small businesses by providing a fuel subsidy – similar to that given to hauliers.”