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David Frost, director general of the British Chambers of Commerce, says that “too much attention is paid to what happens in the square mile and Canary Wharf and not the real economy outside".

This has been born out by the results of a Populus survey commissioned by the British Chambers of Commerce that shows the majority of firms have not been affected by the credit crunch.

Asked whether the credit crunch had affected businesses’ ability to access fresh funds, 57 per cent said no, 26 per cent said yes and 17 per cent did not know.

Sixty per cent of respondent said that the credit crunch had not made them change plans to expand their business this year, while 36 per cent said they had changed plans.

Frost says, however, that we can not be complacent. He believes that too much focus has been placed on the consumer driven economy to the detriment of an export led model, as illustrated by the £50bn trade deficit.

“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 adds.

He maintains that most business owners tell him that whilst business is challenging they are doing well and are succeeding in tough export markets.

Frost says that they understand that the current global credit difficulties will impact, but tell him that far too much attention is paid to what happens in the Square Mile and Canary Wharf and not the real economy outside.

"Perhaps this is a reflection of our national pre-occupation with financial services. Yes it is vital, yes London is the centre of global financial services, but this should not detract from the contribution to this country of the millions of small businesses not engaged in financial services, but contributing to the wealth of this country, be it in manufacturing or support services," he adds.

Frost says that the weakening of Sterling against the Euro will undoubtedly help exports and says that it should help re-balance the economy away from a consumer driven one to an export led model.

He says that this needs to happen but warns that it is not enough on its own. A weak pound does not indicate a strong economy, Frost explains.

He says that the weakness of Sterling is, in part, a reflection of the UK’s “appalling” trade figures, with a trade deficit of £50bn. He calls for more focus on trade promotion.

“Changes to UK Trade and Investment over recent years have not been helpful. A move away from trade promotion to inward investment and a focus on the City have not been helpful," Frost concludes.

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Related links 

• British Chambers of Commerce