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Rescue package 'should include small firms'

Oct 09 2008

Small companies should be recognised in the bank restructuring programme to help them with rising costs, according to an industry body.

The Federation of Small Businesses (FSB) states firms should be recognised in any plan produced by the government as they are currently experiencing increasing costs and a reduction in trade.

It calls for specific measures for small businesses to be included in any rescue package, in order to help the increase in bank charges which are having an effect on these firms.

John Wright, national chairman of the FSB, says: 'It is crucial in these tough times that small businesses have access to fair overdraft and loan rates.'

He describes now as the 'ideal opportunity' for the government to act in favour of these firms.

Wright states more money should be issued to these companies to enable them through the next year.

The FSB welcomed the move from the government and the Bank of England yesterday to cut interest rates by 0.5 per cent, to 4.5 per cent.

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