Weekly Brief
Week 50 of 2008              Friday 12 December 2008

In this week's issue: credit crunch poll; banking code; EU summit; late payment; Westminster report; fast food; congestion charge; case studies

Credit crunch poll

Around a third of small businesses are still struggling to get affordable credit from the banks despite commitments to lend fairly, according to the FSB's latest credit crunch poll. The results, which were reported by BBC News, the Times, the Financial Times, Daily Express, Daily Telegraph, also showed that over a third of small businesses may resort to cutting staff hours, curbing future hiring and even closing down.

Banking Code

The second Small Business Finance Forum was held this week and FSB National Chairman John Wright was instrumental in getting the banks to halve the time it takes to switch accounts from 10 to five days as part of a new statutory Statement of Principles signed by the banks.  The FSB's reaction to the meeting was reported in the Financial Times and the Daily Telegraph.

EU summit

FSB National Chairman John Wright mingled with British Prime Minister Gordon Brown and French President Nicolas Sarkozy and E.U. Commission President Jose Manuel Barroso at a European Economic summit on Monday on how to tackle the economic crisis. The BBC waited outside the meeting at Lancaster House in London to get Mr Wright's reaction.

Prompt Payment Code

The FSB has backed a new Code of Practice, launched by the Government this week, to help increase the speed of payments between businesses.  The FSB highlighted the damaging issue of late payment in the Times, The Independent, and the Financial Times.

Westminster report

FSB National Policy Chairman John Walker this week launched a report on the impact of employment regulations on small businesses. The document, put together by Westminster University, found that small business owners have better relationships with their staff and offer more employment opportunities to a wider group of people than big companies. Read the report and view pictures from the launch event which was attended by Small Business Minister Baroness Vadera and Peter Luff, Chair of the Business and Enterprise Committee.

Fast food

The FSB stood up for local food outlets amid plans by Waltham Forest Council to ban fast food shops from within 400m of schools and parks. FSB Head of Public Affairs Stephen Alambritis warned in the Metro, the Daily Mirror and the Daily Telegraph that the proposals would damage the "£20 billion a year industry."

Congestion Charge

The FSB claimed a victory in Greater Manchester after residents voted against a congestion zone in the city centre. Thanks to the good work of the FSB representatives in Manchester and North Cheshire, the FSB has been the lead business organisation in the NO campaign and is instead calling for the local councillors to speak to residents and businesses to come up with a transport system that is affordable and fit for purpose.

Case studies

If you are having problems accessing credit from the bank, the FSB is keen to hear from you so that we can put your views across in the media and at our meetings with the Government. Email us and we will try to get your voice heard.

Have a good weekend,

Marc Shoffman