Small businesses see chink of light at last

National chairman John Walker said that 2012, when the UK dipped back into recession, had proved tough, but suggested the picture for the coming months was a little brighter than it had been in recent years.

But he criticised the banking industry for pushing many businesses to the wall through mis-selling financial products and warned that it must work hard to rebuild trust with small firms.

In his New Year message, he also told the Coalition that his members are facing a “huge compliance burden” under changes being introduced in April which will force all companies to report their payroll information in real time.

Mr Walker said: “Confidence is still low, with many concerned about lack of demand and wider economic issues, but our members are heading into 2013 with more confidence than they did going into either 2011 or 2012.This is a move in the right direction and something the Government must build on in the new year.”

He added: “The signs seem to be positive, but it’s going to be a long road ahead with some economists warning of a triple-dip recession, and others cautious optimism.”

The FSB national chairman said banks are still failing to provide the finance companies need, with less than 10 per cent of small businesses reporting easy access to the credit they need.