Rural firms 'silent victims' of credit crunch

Date: 15th December 2008

Britain's rural enterprises are increasingly becoming victims of the credit crunch, according to new research.

In a survey of almost 500 business start-ups, the Federation of Small Businesses (FSB) found that 80 per cent believe the government is not helping them through the downturn.

In response to this, the federation has called for a series of measures to be implemented, including free parking in towns and villages over the festive season to help spur sales.

John Wright, national chairman of the FSB, commented: "Rural businesses are as integral to the wellbeing of our economy as the turkey is to our festive dinner.

"If rural firms are not supported now, we could watch our markets, high streets, towns and villages become extinct."

An earlier investigation by the FSB found that red tape and employment regulations were hindering a large number of business start-ups from taking on new staff.