30/12/2008 - Action urged to help smaller firms
The Chancellor and the Governor of the Bank of England have been urged to consider capping interest rate charges on credit cards in a bid to help smaller firms cope with the economic downturn.
Action was also needed to make sure firms were paid on time to keep their cash flow going, John Wright, the chairman of the Federation of Small Businesses, urged.
Mr Wright also called for a limit on the "tide" of regulations he claimed was "drowning" small firms.
He said: "With base rates at 2% and falling, the Chancellor and the Governor of the Bank of England must look into capping interest rates charged on credit cards.
"A cap on interest rates will at a stroke not only reduce business costs but give consumers a real boost and cut the cost of borrowing."
Mr Wright added that 2009 should be a "year of action" for small businesses. "The small business sector is the sector to see the UK out of the recession," he said.
"Small businesses are innovative, enterprising and flexible, but an increase in late payments, a decline in trade and poor access to finance will leave thousands facing closure in 2009."
Copyright © Press Association 2008
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