North-east and Scottish firms 'thriving in recession'

Date: 16th February 2009

Small businesses in the north-east and Scotland are thriving, despite the recession, a new survey has shown.

The investigation by the Finance and Leasing Association (FLA) revealed that over 40 per cent of firms in these regions reported sales growth in the final quarter of 2008.

Elsewhere, the picture was slightly different as 23 per cent of London-based companies look to make redundancies - potentially increasing the likelihood of business taxation cuts at April's budget statement.

Director general at the FLA, Stephen Sklaroff, said: "The financial crisis in the City of London may well have contributed to the clearest north-south divide for some time.

"There is growing evidence that the problems in the capital are rippling out to every other area of the country."

He added that small businesses - such as sole traders and partnerships - all over the UK were "braced for an extremely challenging year".

Earlier this month, the British Chambers of Commerce claimed that the government should freeze national minimum wage if it is to help businesses through the economic downturn.