‘Majority’ of businesses not troubled by credit crunch

Many UK businesses have not been adversely affected by the global credit crunch, the British Chambers of Commerce (BCC) has argued.

A survey commissioned by the BCC revealed that only a quarter of firms reported encountering problems accessing funds as a result of the credit crisis.

A third said that the credit crunch had imposed changes on their plans for expansion this year.

However, the majority, particularly those firms outside London and the finance sector, believed that the turmoil in the money markets had had little bearing on the way they run their businesses.

David Frost, the BCC’s director general, emphasised the localisation of the problem in a speech he gave to the BCC annual Business Convention in Liverpool.

Mr Frost said: “Our members are the backbone of the British economy and they are in the frontline of these intense global challenges.

“What has impressed me over recent months has been their amazing resilience. If you lived your life in London you would often be left with the impression that the economy was about to fall off a cliff. From my visits around the country I can assure you it is not.

“When I speak to them, be it in Aberdeen, Birmingham, St Helens or Rotherham, they not only inspire me with their success, but they tell me that whilst business is challenging they are doing well. They are succeeding in tough export markets. Yes, they understand that the current global credit difficulties will impact, but they tell me that far too much attention is paid to what happens in the square mile and Canary Wharf and not the real economy outside.”

Richard Lambert, the director general of the CBI, has also recently emphasised that businesses beyond London are not experiencing the same level of downturn that is affecting the financial services sector in the capital.

Date:28 April 2008