Businesses demand £1 billion recession fund

Date: 23rd October 2008

Business start-ups are rounding on the government in a bid to secure funding for the sector during the economic downturn.

The Federation of Small Businesses (FSB) has called on Whitehall to provide a £1 billion rescue fund for the sector to help save companies threatened by the challenging economic climate.

The FSB also demanded that large corporations which fail to pay small firms on time be named and shamed, with it being estimated that the average big business owes £30,000 - money that could be used towards accountancy fees or taxation.

Chairman of the FSB, John Wright, commented: "A lot has been made of the rescue package for big banks, but small businesses are at the heart of our economy.

"A rescue package for small businesses is crucial to shortening the economic downturn and saving jobs."

It was announced earlier this week that the small business sector would be receiving £350 million in skills training as part of the government's Train to Gain programme.