Businesses see improvements in credit conditions

Date: 17th April 2009

Businesses are beginning to see slight improvements in credit conditions, according to a new survey.

A poll by the Forum of Private Business (FPB) found that almost a tenth of companies in April reported easier access to finance, compared to none the month before.

Additionally, over a quarter of respondents, which likely included limited companies and partnerships, claimed a rise in demand for their goods and services.

Phil Orford, chief executive of the FPB, said: "There appears to be grounds to be cautiously hopeful, but we are still a long way from genuine and sustained economic recovery.

"To capitalise on these positive signs, the government must launch a long-term, strategic plan in the forthcoming budget."

Mr Orford added that any measures introduced on April 22nd would ideally be "a catalyst to broader economic prosperity".

Earlier this week, the British Chambers of Commerce suggested that a freeze in the national rate of minimum wage would provide a major boost for small businesses.