More than 30,000 smaller firms could go bust next year as the economic downturn causes more problems, the Federation of Small Businesses (FSB) said yesterday.
The FSB urged the government to cap interest rate charges on credit cards and said there should be an easing of regulations for small firms.
Chairman John Wright said: “A cap on interest rates will at a stroke not only reduce business costs but give consumers a real boost and cut the cost of borrowing.”
Speaking about the capital, spokesman Stephen Alambritis said: “One quarter of London’s small businesses are financed on the credit card.
“With interest rates at 2% we urge the government to cap rates, thus releasing more money into London’s economy.”
The British Retail Consortium this week said that the Christmas retail sales picture will not be “pretty” when official figures are released next month.
