SMALL firms are losing a total of nearly £2bn a year because of the poor state of Britain's roads and railways, says a survey.

The cost to such firms is 40% more than a year ago, said the survey by Bibby Financial Services.

Nearly two in five small company bosses reckon they are losing up to £10,000 a year because of poor transport infrastructure. Some 6% estimate their annual loss is more than £10,000.

More than 20% of staff at small companies have missed important business meetings through traffic congestion, a 2% rise on a year ago.

A total of 12% of small firms have suffered staff lateness due to poor transport infrastructure, while 9% have lost a big order because of transport problems.

And 10% of small businesses have lost key members of staff directly because of increased transport costs or a lack of public transport.

Two in five companies say fuel prices are having the single biggest negative effect on their success.