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Small manufacturers blame government for downturn
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25/08/2008
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The owners of small manufacturing firms are blaming the Government for the effects of the credit crunch.
Research from one of the Forum of Private Business’s (FPB’s) partners, UK200 Group - which represents lawyers and chartered accountants - reveals that 88% of respondents say the economic downturn is hitting their levels of business, with 72% forced to reduce their margins as a result.
Respondents were invited to select the factors they consider to be responsible for the downturn. Although 85% blame the banks to some extent, and 73% the ‘world economy’, 90% say it is the fault of the Government.
Delayed or late payment is one of the biggest threats to small firms, particularly as obtaining credit has become much more difficult. In the survey, which was carried out in July, 71% of respondents claim that customers are taking longer to pay them. Although only 45% are experiencing greater difficulty in obtaining credit, a huge 98% expect the credit crunch to adversely affect their business in the future.
"The Prime Minister keeps saying he is listening to the concerns of voters, but the results of our research show that small businesses believe he is bypassing their concerns when they most need his support," said Nick Palin, the FPB’s Director of Finance and Administration. "The Government should be working more closely with small businesses in order to help them to navigate the stormy water ahead and the longer-term issues that will come in the aftermath of the credit crunch."
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Author
Ken Hurst
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