While bank charges for small business accounts being proposed by the Royal Bank of Scotland (RBS) may seem modest, they are just another expense which will cause problems for start-ups, according to the National Federation of Enterprise Agencies (NFEA).

RBS plans to introduce transactional costs and a monthly charge of £10 to its Business Banking Direct account next month.

George Derbyshire, NFEA chief executive, comments that though the sums seemed small in comparison with total turnover, small businesses are already facing increased tariffs in transport, energy and utilities – ‘all of which will make life more difficult’.

This is especially difficult ‘at a time when consumers are starting to feel the pinch’, he says.

In addition, other banks will be watching to see how customers react to the new charges, which could see them imposing similar tariffs, he continues.

Derbyshire adds: ‘At present the other banks have this competitive advantage over RBS: if they move to follow, they will lose their competitive advantage but gain some revenue.’