28
Apr
Ignore City Gloom
THE SUNDAY TIMES April 27th 2008 - BUSINESS SECTION David Smith,
Economics Editor reports. Industry told to ignore City gloom. Most
firms have not been affected by the credit crunch and there is a
risk that the attention devoted to its impact on the City and
Canary Wharf overdoes the gloom, business leaders say. The British
Chambers of Commerce (BCC), which holds it annual conference in
Liverpool beginning tomorrow, says a survey it has commissioned
shows business is 'resilient' in the face of the credit crunch. The
Survey, carried out by the polling company Populus, shows that only
a quarter of firms have found it more difficult to access funds as
a result of the crunch. While 26% said raising finance was more
difficult, 57% said it was not. The survey shows that while just
over a third of businesses, 36%, have amended their plans in the
wake of the crunch, 60% have not. 'Too much attention is paid to
what happens in the Square Mile and Canary Wharf and not the real
economy outside.' BCC director-general David Frost will tell the
conference. 'Our members are the backbone of the British economy
and they are in the front line of these intense global challenges.
What has impressed me over recent months has been their amazing
resilience. If you lived your life in London you would often be
left with the impression that the economy was about to fall off a
cliff. From my visits around the country I can assure you it is
not.' Frost said that the pound’s fall against the euro would
help exporters and help rebalance the economy away from consumer
spending. Despite the upbeat tone of the BCC's survey, it continues
to believe the Bank of England should cut interest rates next month
from 5% to 4.75% to prevent a sharper downturn in the wider
economy.