Cold snap causes loss of millions to UK economy

Small firms in the UK could be risking their contracts by failing to meet obligations during the cold snap.

Research from the Federation of Small Businesses (FSB) has found that the economy is losing between £600 million and £1 billion every day.

Commenting on the study, the national chairman of the FSB John Walker said: "We need to see a co-ordinated effort from government, banks, local authorities and landlords to give small businesses some breathing space to recover in the New Year."

The FSB has said the government, councils and lenders should work together to help small firms during the recovery period.

In particular, it called for reduced business rates from councils and an extension to the Time to Pay Scheme.

This week, Natwest and the Royal Bank of Scotland announced their support for small firms.

Peter Ibbetson, chairman for small business at the bank, said that the lender would be extending several services to small firms, including extended overdrafts.

Published on: December 22, 2010

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