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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Wage Subsidy Fund

A wage subsidy fund would help reduce the amount of staff that SMEs are forced to cut due to the recession, according to the TUC and FSB.

The TUC and FSB have called on the government to subsidise up to 60% of a worker's wage by a combination of a specially set up fund and the job seekers allowance.

With unemployment figures in the UK steadily increasing - it currently stands at just under 2m - the TUC and FSB claim that the government could support over 600,000 employees a year at a cost of £1.3bn.

A number of European countries such as France, Italy, Spain and Germany have already set up such a fund to try and reduce the amount of staff that are laid off as firms seek to cut costs.

"Where they are needed, wage subsidy schemes provide a quick and effective way to cut costs for struggling businesses and vital financial help for hard-pressed employees," said Brendan Barber, TUC general secretary.