Plea to help flagging rural firms

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Rural businesses are the silent victims of the credit crunch and need urgent help to survive, the Federation of Small Businesses (FSB) has warned.

It called on the government to scrap April's fuel duty rises, make Christmas parking in towns and villages free and tackle longer-term transport problems.

The FSB says nearly 60% of rural firms expect Christmas trade to be down and 80% say the government has not helped.

FSB chairman John Wright said without support now, high streets could die.

"These figures show that small businesses in rural Britain are the silent victims of the credit crunch," he added.

"If rural firms are not supported now, we could watch our markets, high streets, towns and villages become extinct."

A survey of almost 500 members of the trade body whose firms are based in rural areas also found confidence was low.

More than eight out of 10 small companies said they did not feel better placed to weather the economic troubles following November's pre-budget report.

The FSB called for a package of measures for local firms, saying they provide a much-needed stimulus for towns and villages across Britain.

They include tackling long-term rural problems such as the lack of transport infrastructure and poor access to services.

It also wants a commitment that a substantial amount of the £7bn made available by the government for small firms is used to help rural businesses.