Business majority 'not affected by credit crunch'

Most UK businesses are yet to feel the effects of the credit crunch, according to the British Chambers of Commerce (BCC).

And, the BCC says, there is too much emphasis on the London financial markets rather than on "the real economy".

The organisation's comments came ahead of its annual Business Convention, held yesterday in Liverpool. According to a Populus survey commissioned for the BCC, 57% of firms said that the credit crunch had not affected their ability to access fresh funding. Some 17% said that they did not know, while 26% said that it had.

However, the BCC's poll did suggest that a substantial minority of businesses had been forced to adapt to the current financial climate. While 60% said that their intentions were unchanged, 36% reported that they had reconsidered plans to expand their business this year.

In his speech to the convention, BCC director-general David Frost said that chamber members understood that the current global credit difficulties will have an impact, but added: "they tell me that far too much attention is paid to what happens in the Square Mile and Canary Wharf and not the real economy outside.

"Perhaps this is a reflection of our national pre-occupation with financial services. Yes it is vital, yes London is the centre of global financial services, but this should not detract from the contribution to this country of the millions of small businesses not engaged in financial services," he added.