The Federation of Small Businesses (FSB) has said last month’s Bank Rate increase from 3% to 3.5% will heap further pressure on the small business community. FSB National Chair Martin McTague said, “The precipitous climb in borrowing costs in under 12 months has hit small firms hard, eroding their margins at a time when many are struggling with the very cost increases which prompted the Bank of England to increase the rate in the first place.”