Small businesses need a go-between to help rebuild ailing relationships with the banks and revive the flagging economy

Over 70% of respondents to the FSB survey commented that a corporate mediator would help to build better relations between banks and small businesses.

The research also showed that a third of small companies consider their bank to be less helpful than before the downturn.

"It is high time the Government took some serious action and built bridges between the banks and the small businesses which keep our economy moving," said FSB chairman John Wright.

"The future health of our economy depends on mending the relationship between small business and the banks; small firms and entrepreneurs need confidence to take the risks to innovate, grow and create jobs and take us out of the recession."

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