The Federation of Small Businesses has highlighted their main concern for small businesses as they approach 2009 – the issue being between the small businesses and their banks.

The Federation, who represents almost a quarter of a million small businesses around the country, claims that if 2008 has taught small businesses anything it is that the relationship between the business owner and the bank manager is one that should be dealt with, with serious importance.

Stephen Alambritis, chief spokesman for the Federation, urges small businesses to do all they can to make the following year as stable as possible.  Alambritis said, “Next year will be a testing time for the relationship between banks and their 4.7million small business clients.  The banks must give good money at good rates to viable small businesses.

He went on to highlight the importance of small businesses in Britain by saying, “Good support for small businesses in 2009 will translate into good support for the economy.  Everyone has a part to play to ensure the 2009 recession is shallow and short. Banks, governments, local authorities and large companies can all help.”

The news also comes after Alambritis recently commented on the news that ten per cent of high street shops will be vacant by the end of January, 2009, despite the strong sales felt by retails during the lead up to Christmas.

Alambritis, speaking on behalf of the Federation, claimed that, “The sight of boarded-up units and charity shops will put off customers and make life even harder for the struggling retailers that remain.  There is already the prospect of a reduction in the number of banks and building societies that draw shoppers into town centres.”

The Federation was clearly attempting to rally the public as they have attempted to do before in similar situations around the country during the economic downturn, as Alambritis claimed, “We would urge landlords to do what they can to work with tenants rather than leaving sites to go empty.  Business rate rises will be calculated on the basis of September’s inflation, which was 5.2 per cent, well above the current rate, and that alone could be the breaking point for many traders.”

The news that one in ten high street shops would meet their untimely end by the end of January was released by retail analysts, Experian, who claimed that there were 12.5 per cent more shoppers on Boxing Day 2008 than there were on Boxing Day 2007, however, the rise is being put down to the massive discounts that have been made available on the high street – some reaching up to 90 per cent reductions.

Director of property consultancy at Experian, Jonathan de Mello, claimed that a staggering 1,300 shops will be left bare at the end of January, claiming, “This will hurt retailers and landlords alike and ultimately the vitality of the UK’s high streets. Many of these sites, particularly those vacated by Woolworths, will be too big for other retailers and will lie empty.”

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