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Businesses 'losing banking relationships'

Feb 16 2009

Research from the British Chambers of Commerce (BCC) shows bosses are experiencing deteriorating relationships with local bank managers.

A survey of more than 400 small and medium-sized businesses found just 45 per cent feel their bank manager understands their needs and is able to offer them help.

Furthermore, nine per cent believe their bank understands what help they need but is unable to provide it, while six per cent claim they do not feel understood and think their manager is obstructive as a result.

The survey also finds over three-quarters think the value added tax cut has resulted in no business benefit, with 20 per cent claiming it placed extra burdens on them.

In addition, 43 per cent of companies predict their turnover could drop by as much as half over the next three months and 28 per cent will be forced to cut their working hours.

Steve Hughes, economic adviser to the BCC, comments: 'The dangers facing the business community are plain to see in these results. Confidence in the economy is non-existent and this requires an incisive response from government.'

Last week, the BBC claimed the predictions of sharp economic recovery over 2010 found in the Bank of England's Quarterly Inflation report are 'unduly optimistic'.

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