The recent CBI survey has revealed that one in five firms claim credit tightening has affected or is expected to affect business decisions. Of this number, 34% said they are cutting output or stock levels, 29% are trimming capital investment (and a further 25% postponing investment plans), while 26% are cutting jobs or recruitment plans. 

Ian McCafferty, CBI Chief Economic Adviser, said: "The credit crunch has not caused funding to small firms to dry up, and the bulk do not think they will be affected. However, a minority are feeling the pinch and have started to scale back business plans, whilst more expect the situation to worsen." 

"These businesses are concerned that over the coming year credit will cost more, and lending conditions will tighten. There will clearly be a knock-on effect on investment, jobs and the wider economy, but the overall impact is still likely to be limited." 

Asked about recent Government proposals to change the Capital Gains Tax (CGT) regime, 40% of SMEs said the changes would have a negative impact on their business.