FSB: More needed from govt
Feb 09 2009
The government needs to do more to stimulate the economy, after a Federation of Small Businesses (FSB) survey claims recent measures have had little impact.
A poll of over 4,000 of the organisation's members reveals they believe bank lending guarantees, the cut in value added tax (VAT) and pledges on payment practices have done little to improve the situation facing small companies.
The survey finds more than half of respondents have experienced a fall in trade over the past two months, in spite of the 2.5 per cent reduction in VAT in November last year.
In addition, 53 per cent say they do not believe the £1 billion Enterprise Finance Guarantee Scheme, which provides security to loans to small businesses, will encourage banks to increase lending.
The poll also reveals 36 per cent of small companies are waiting longer to be paid for private sector work, while one-fifth also claim it takes more than ten days for public sector payments to be settled.
John Wright, FSB national chairman, comments: 'These startling figures show there is still more to be done by government and the banks to ensure businesses can survive in this economic climate.'
Wright also points out that the small business sector provides a useful source of turnover and employment for the economy, but suggests "stumbling blocks" are limiting its chances of survival and recovery.
Meanwhile, a new study from the Confederation of British Industry shows firms are expecting the financial environment to worsen over the next three months, with 65 per cent of small businesses reporting their access to credit has declined in the last quarter.
A poll of over 4,000 of the organisation's members reveals they believe bank lending guarantees, the cut in value added tax (VAT) and pledges on payment practices have done little to improve the situation facing small companies.
The survey finds more than half of respondents have experienced a fall in trade over the past two months, in spite of the 2.5 per cent reduction in VAT in November last year.
In addition, 53 per cent say they do not believe the £1 billion Enterprise Finance Guarantee Scheme, which provides security to loans to small businesses, will encourage banks to increase lending.
The poll also reveals 36 per cent of small companies are waiting longer to be paid for private sector work, while one-fifth also claim it takes more than ten days for public sector payments to be settled.
John Wright, FSB national chairman, comments: 'These startling figures show there is still more to be done by government and the banks to ensure businesses can survive in this economic climate.'
Wright also points out that the small business sector provides a useful source of turnover and employment for the economy, but suggests "stumbling blocks" are limiting its chances of survival and recovery.
Meanwhile, a new study from the Confederation of British Industry shows firms are expecting the financial environment to worsen over the next three months, with 65 per cent of small businesses reporting their access to credit has declined in the last quarter.
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