Devon business bosses stay positive

DEVON business leaders have called on employers to begin the new year with a positive attitude to help the county bounce back from the economic downturn.

As many return to work after the festive break, there was hope that 2009 could bring recovery after a tough year for employment, sales and profit margins.

Derek Phillips, chairman of Exeter Chamber of Commerce, said: "There's no doubt it's going to be a difficult year, but Exeter stands a very good chance of coming out of the recession quicker and better than many other places."

He said it was important that Exeter City Council's bid for unitary status was resolved.

"Once we get the unitary decision out the way, whatever the result, we need to get all the local authorities and businesses working together to mitigate the worst of the recession and ensure Exeter remains a vibrant city," he said.

Mr Phillips added that restoring consumer confidence was vital.

"We have got to encourage people to spend, because if they don't, many businesses will find it incredibly difficult," he said.

"I don't think the 2.5 per cent VAT reduction was anywhere near enough, so we have to think about how we encourage people to be confident to go out and spend to keep businesses going."

Mr Phillips hopes banks will be more receptive to businesses wanting to borrow for investment.

"If we can get money circulating again, things will start to move," he said.

Tim Jones, chairman of Devon and Cornwall Business Council, said: "Exeter needs to start the new year by forgetting the doom and gloom of 2008 and start working with a much more positive can-do attitude for 2009.

"We have had pretty much unrelenting bad news through the past 12 months and everyone's got into a mindset of thinking that's the way it is. But in my view, 2009 is the year of opportunity.

"We are definitely past the worst and there are clear signs that the green shoots of recovery are starting to emerge.

"Devon has a lot that it can capitalise on, such as over £1bn of investment in further education. There are major opportunities with Exeter's airport and science and technology. Devon has got to play to its strengths and start finding areas of new business, not only building on existing business but we now need to look at strengthening our position as an international trading centre."

On his message to employers in Devon, Mr Jones said: "Hang on to your most valuable asset — your staff — and use the opportunity to retrain and up-skill them. Go for the fact that there are new market opportunities now that we have had the worst of the recession and that banking is beginning to return to normal, and start developing a positive business plan."

Nigel Hillier, chairman of the Exeter branch of the Federation of Small Businesses, said: "We would hope that the Government will bring forward a light legislative programme for 2009 and that the Budget in March does not raise taxes or impose further regulatory burdens but concentrates on getting the economy moving again.

"We would also urge the Government to ensure funding flows as early as possible from the small business finance scheme and it's extended to a wider small business loan scheme."

Mr Hillier called on banks to release credit to small businesses and urged big businesses to pay small firms more promptly.