FSB calls for rate cut
Article Date: Nov 05 2008The Federation of Small Businesses (FSB) is calling for an interest rate drop to help small firms, as many begin to cut jobs or stop hiring.
Research from the organisation finds almost three-quarters of small firms would back a rate cut today as 1.5 million companies are set to go bust if the current economic climate continues.
The survey also discovered 14 per cent of these small businesses have already cut back on hours and almost 70 per cent either plan to or have put a hold on employing new staff.
Stephen Alambritis, head of public affairs at the FSB, says: 'The survey means that these are very tough times for small businesses and they'll do anything they can to hold onto their staff.'
He says an interest rate cut of one per cent should be seen this week and if it is not then many firms will have to shed more staff.
Alambritis also urges lending levels from banks to increase, otherwise many firms will not 'hold that positive outlook for much longer'.
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