A Federation of Small Business survey finds that moves aimed at guaranteeing bank loans to small firms was having no impact.
Only one in twelve of the businesses surveyed reported that their banks were making the Government backed Enterprise Finance Guarantee scheme.
The Government must assess why loans are still being refused.
A separate survey of 5,000 businesses has found that the VAT cut from 17.5% to 15% had no impact on their trade.
And the survey finds that both the public and private sector are taking longer to pay their invoices.
To conclude, the Government must do more to help the small business sector, especially as it is an engine of growth for the economy providing both vital employment and
turnover for the UK economy in these tough times.
Source: The Asian Trader