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Industry bodies call for better trading terms

The Federation of Small Businesses (FSB) has warned that the region’s SMEs must have better access to finance if they are to prosper this year, ahead of today’s anticipated inflation report.

The Bank of England’s 0.1% first estimate for the final three months of 2009 marked an end to the slump and also predicted that the UK economy would grow at a year-on-year rate of 4% by the end of the year.

Despite this, the FSB has warned no improvements will be made to small businesses in the North East, if credit conditions remain tight.

Simon Hanson, North East policy manager, of the pressure group, said: “To allow more to take advantage of the recovery of the economy we’re looking for more small businesses to be paid on time and for more to have better access to finance.

“Small businesses will drive the recovery of the North East. Recent surveys have shown that 46% of our members have seen a decline in sales.

Further to this, 25% have said they can’t see any improvements in 2010.“

Meanwhile, the North East Chamber of Commerce (NECC) said the UK exporters were losing the global growth race despite new figures revealing a rise in British exports.

The Office for National Statistics released data yesterday showing UK exports grew by 1% in December, while the volume of imports is up 4.5% since November 2009.

This means the UK is importing £3.3bn more goods and services than it exports - a statistic which, according to the NECC, shows that the UK s punching below its weight at present considering the weak sterling.

The organisation has called on the Government to take decisive measures to provide far greater support for exporters so they can be a key driver of the UK economy.

Jonathan Walker, NECC policy adviser, said: “The growth in both exports and imports is a good indication that the overall UK economic recovery is continuing – people are buying and selling more. However, NECC is very concerned that UK exporters are struggling to keep pace with competitors abroad at a time when the playing field is tilted in our favour.

“The Government has to take urgent action to help exporters who are struggling to get competitive insurance to cover credit concerns when trading abroad.

“Greater support is needed to help firms find and exploit opportunities in the biggest growth markets across the globe.

“Finally, we have to remove the ridiculous extra tax burdens placed on foreign travel at a time when we have to look to worldwide markets for the future growth of the UK economy.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .