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| Version 0 | Version 1 |
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| Credit crunch biting in small town UK | Credit crunch biting in small town UK |
| (about 8 hours later) | |
| How is the credit crunch affecting real life in Britain? Dave Harvey, the BBC's Business Correspondent in the West Country, is spending the week on the road in the region, seeing for himself. | How is the credit crunch affecting real life in Britain? Dave Harvey, the BBC's Business Correspondent in the West Country, is spending the week on the road in the region, seeing for himself. |
| "In the end we had debts of around £90,000," says the nice, friendly woman on Bridgwater's High Street. Yes, that's right - £90,000. | "In the end we had debts of around £90,000," says the nice, friendly woman on Bridgwater's High Street. Yes, that's right - £90,000. |
| She's called Pru, and she ran a small family building firm here in Somerset with her husband. | She's called Pru, and she ran a small family building firm here in Somerset with her husband. |
| Fatally for her, they tried to save the firm when the building trade went sour earlier this year. They put their own money in, and eventually lost everything. | Fatally for her, they tried to save the firm when the building trade went sour earlier this year. They put their own money in, and eventually lost everything. |
| There are record numbers of people like Pru here in Somerset. | There are record numbers of people like Pru here in Somerset. |
| I've just had the worst week of my life Shopkeeper Les Harding | I've just had the worst week of my life Shopkeeper Les Harding |
| She found her way out with a local debt adviser who has set up in business, charging a modest fee and helping sort out the chaos. He's called Jeremy Hockley, and he told me £90,000 was not unusual. | She found her way out with a local debt adviser who has set up in business, charging a modest fee and helping sort out the chaos. He's called Jeremy Hockley, and he told me £90,000 was not unusual. |
| "Our biggest figure was actually £8.2m, but our average debt is £60,000 - and that doesn't include mortgages, these are unsecured loans," he says. | "Our biggest figure was actually £8.2m, but our average debt is £60,000 - and that doesn't include mortgages, these are unsecured loans," he says. |
| Fortunately, Pru is still relatively unusual in Bridgwater. But I met plenty of businesses battling for survival. | Fortunately, Pru is still relatively unusual in Bridgwater. But I met plenty of businesses battling for survival. |
| Sales are terrible | Sales are terrible |
| Les Harding runs a gift and gadget shop in Bridgwater, and I'd no sooner pulled up in the High Street than he pours out his woes. | Les Harding runs a gift and gadget shop in Bridgwater, and I'd no sooner pulled up in the High Street than he pours out his woes. |
| The situation in Bridgewater is mirrored across the UK | The situation in Bridgewater is mirrored across the UK |
| "I've just had the worst week of my life," he says. "Sales are terrible." | "I've just had the worst week of my life," he says. "Sales are terrible." |
| His business is what retail experts call "dispensable purchases" - fancy diving watches, magnetic desk gizmos, indoor helicopters. So it's no surprise he's suffering. But he blames me. | His business is what retail experts call "dispensable purchases" - fancy diving watches, magnetic desk gizmos, indoor helicopters. So it's no surprise he's suffering. But he blames me. |
| "It's the media hyping it all up, telling people the country's going bust, and so they're not spending their money," he says. | "It's the media hyping it all up, telling people the country's going bust, and so they're not spending their money," he says. |
| Mr Harding is an angry man. And current headlines are not helping - mortgage borrowing at a record low, London accountants claiming Britain is in recession. | Mr Harding is an angry man. And current headlines are not helping - mortgage borrowing at a record low, London accountants claiming Britain is in recession. |
| But in Bridgwater, the credit crunch is not just media hype. | But in Bridgwater, the credit crunch is not just media hype. |
| Ian Pople has felt the thick end of it. He is a credit expert, his firm of mortgage advisors scours the market for the best deals for his customers. But last week, his own bank withdrew his business overdraft. | Ian Pople has felt the thick end of it. He is a credit expert, his firm of mortgage advisors scours the market for the best deals for his customers. But last week, his own bank withdrew his business overdraft. |
| "I can see why they've done it," Mr Pople explains, "We're a high risk business now. It used to be a boom sector, but the mortgage market has collapsed. Even so, it makes things really hard for us." | "I can see why they've done it," Mr Pople explains, "We're a high risk business now. It used to be a boom sector, but the mortgage market has collapsed. Even so, it makes things really hard for us." |
| Market aggressively | Market aggressively |
| I've come to Bridgwater with a couple of financial experts from Business Link, ready to give small firms some one-to-one advice. | I've come to Bridgwater with a couple of financial experts from Business Link, ready to give small firms some one-to-one advice. |
| Janet White has big plans for her business | Janet White has big plans for her business |
| In a small shop bursting with wool, bobbins and haberdashery, Business Link's Penny Bond meets a woman trying to make the best of her struggling craft business. The trouble is simple enough: sales too low, rent too high. | In a small shop bursting with wool, bobbins and haberdashery, Business Link's Penny Bond meets a woman trying to make the best of her struggling craft business. The trouble is simple enough: sales too low, rent too high. |
| But Janet White isn't going easily. "We've got such lovely customers, who are so keen on our products," she says. | But Janet White isn't going easily. "We've got such lovely customers, who are so keen on our products," she says. |
| "So we're going to open up online, and I hope they'll follow us onto the internet." | "So we're going to open up online, and I hope they'll follow us onto the internet." |
| It's a wise move, Penny thinks. In fact, plenty of businesses could learn from Janet. | It's a wise move, Penny thinks. In fact, plenty of businesses could learn from Janet. |
| "What we're finding is that firms who work out where their customers are, and go out marketing aggressively, they're the firms who survive," says Penny. | "What we're finding is that firms who work out where their customers are, and go out marketing aggressively, they're the firms who survive," says Penny. |
| 'Yo-yo trade' | 'Yo-yo trade' |
| Small firms, of course, are vital to any town's economy, and Somerset has more of them, per head of population, than anywhere in the UK. | Small firms, of course, are vital to any town's economy, and Somerset has more of them, per head of population, than anywhere in the UK. |
| Mike Watts says trade is very much up and down | Mike Watts says trade is very much up and down |
| Many belong to the local chamber of commerce, so I ask Rachel Sweet from the Chamber what the mood is among Somerset members. | Many belong to the local chamber of commerce, so I ask Rachel Sweet from the Chamber what the mood is among Somerset members. |
| "It's very mixed," she tells me, "we are seeing some firms who, sadly, won't be here in a few weeks time. But others, the ones who can adapt to what I call Business Climate Change, are actually thriving. | "It's very mixed," she tells me, "we are seeing some firms who, sadly, won't be here in a few weeks time. But others, the ones who can adapt to what I call Business Climate Change, are actually thriving. |
| Round the corner, one of Bridgwater's proud independent shops fills the pavement with shiny motorbikes. I wonder, how's business? | Round the corner, one of Bridgwater's proud independent shops fills the pavement with shiny motorbikes. I wonder, how's business? |
| On the one hand, a bike cuts your petrol bill and might be a smart credit crunch purchase. On the other, it's another purchase you can put off till times are better. | On the one hand, a bike cuts your petrol bill and might be a smart credit crunch purchase. On the other, it's another purchase you can put off till times are better. |
| "I call it the yo-yo trade," owner Mike Watts tells me. "One week you're up, the next you're down. Plenty of people just don't have the cash any more." | "I call it the yo-yo trade," owner Mike Watts tells me. "One week you're up, the next you're down. Plenty of people just don't have the cash any more." |
| I meet a customer right there, looking to trade up. And in an irony of our times, he can't buy yet - he has £34,000 tied up in Iceland. | I meet a customer right there, looking to trade up. And in an irony of our times, he can't buy yet - he has £34,000 tied up in Iceland. |