Majority of businesses not affected by credit crunch and “too much attention is paid to what happens in the Square Mile and Canary Wharf”
27/04/08 | 00:01
In his key note speech at the British Chambers of Commerce annual Business Convention in Liverpool tomorrow David Frost, Director General of the British Chambers of Commerce will say that “…too much attention is paid to what happens in the square mile and Canary Wharf and not the real economy outside.”
This has been born out by the results of a Populus survey commissioned by the British Chambers of Commerce that shows the majority of firms have not been affected by the credit crunch.
The survey asked:
Has the credit crunch affected your ability to access fresh funds for your business?
The survey asked:
Has the credit crunch affected your ability to access fresh funds for your business?
Yes – 26%
No – 57%
Don’t know – 17%
Has the credit crunch made you change any plans you had to expand your business this year?
Yes – 36%
No – 60%
Don’t know 4%
However, David will go onto say that we can not be complacent. Too much focus has been placed on the consumer driven economy to the detriment of an export led model, as illustrated by the £50bn trade deficit.
David will say:
On the Credit Crunch
"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.
"Perhaps this is a reflection of our national pre-occupation with financial services. Yes it is vital, yes London is the centre of global financial services, but this should not detract from the contribution to this country of the millions of small businesses not engaged in financial services, but contributing to the wealth of this country, be it in manufacturing or support services."
On The Trade Deficit
"The weakening of Sterling against the Euro will undoubtedly help exports and it should help re-balance the economy away from a consumer driven one to an export led model. This needs to happen but alone it is not enough. A weak pound does not indicate a strong economy
"The weakness of Sterling is, in part, a reflection of our appalling Trade Figures. We are running a Trade Deficit of £50bn. This cannot continue. We need more focus on Trade Promotion. Changes to UK Trade and Investment over recent years have not been helpful. A move away from Trade Promotion to inward investment and a focus on the city have not been helpful."
Ends
Notes to Editors
The Populus survey was carried out between April 9th and 23rd 2008. 250 businesses responded.
Media Contacts:
Nick Dines
Tel: 020 7654 5812
Email: n.dines@britishchambers.org.uk
OR
Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk