Extra costs for diesel could run into billions this year for small businesses, as they face a further sharp increase in key bills. Breaking point is surely not far off for many. How can firms keep vehicles on the roads while managing working capital?

How much will rising diesel prices cost small firms in 2026?

New analysis shows the size of the problem that rising diesel prices pose for small businesses. According to the study, the cost of covering the increasing price of diesel for van drivers is set to reach £2.5 billion for the year. With small firms accounting for a significant portion of van drivers (the vast majority of small commercial vehicles still run on diesel despite growth in the use of electric vans), the burden on an already under-pressure sector is clear.

The release of these findings, with the cause linked to disruption to supply from Russia and the Middle East, adds yet more weight to small business demands for help with fuel costs from the Chancellor. The Federation of Small Businesses, among others, has sounded the alarm around rising costs, calling for the provision of “breathing space” for small businesses in the Autumn Budget 2026.

The British Chambers of Commerce is one the names on this list, pointing to the threat that rising running costs, including the price of fuel, business rates, national insurance and broader inflation, represent to small firms struggling to keep their heads above water. Meanwhile, other recent studies have revealed growing problems that small businesses face with regard to the payment of corporation tax and VAT.

How alternative lenders can help with safeguarding working capital

While rising costs is not a new problem for small businesses, the fresh spike in bills feels more significant, with serious doubts about firms’ ability to absorb yet another round of increases. Hence, the lobbying of the Chancellor and the requests for help ahead of the Budget.

Access to finance is critical to managing the impact of rising costs and this time is no different. However, ongoing caution from traditional banks to small business lending is presenting yet another challenge for firms. This is where alternative lenders can help.

In response to the squeeze on lending, alternative finance has become into a vital lifeline for small firms. Solutions such as invoice finance, asset finance and peer-to-peer lending are filling the funding gap, offering speed, affordability and tailored support.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including invoice finance, and there has been calls for the initiative to be expanded significantly to help smaller businesses struggling to access finance. Such development offers further proof that alternative lenders are increasing filling the small business funding gap.

Small business finance options for dealing with spiking diesel bills

While pressure on the Chancellor typically builds before a Budget, often around a single issue, the spiralling cost of diesel, amid a broader energy price spike, feels genuinely urgent and meriting of direct action. To date, small businesses have proved admirably resilient to the impact of rising running costs, including fuel bills, but this most recent surge surely risks asking too much and pushing many to the wall.

Whether the government steps in remains to be seen, but regardless, access to finance is crucial to facing down this latest challenge. As such, and against the backdrop of continued caution from traditional lenders, it is important that key-decision makers are aware of all the finance options available to them, including the services of alternative lenders.

To find out more about A&T Business Associates services, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.