Alistair Darling has unveiled a state guarantee scheme to underpin credit insurance for small firms, including retailers, in the Budget 2009 today.
The chancellor said the government will offer guarantees for companies that have seen insurance cover reduced but not withdrawn
Retailers in particular have been hit by suppliers refusing to supply them because the retailers’ credit insurance has been withdrawn.
A scheme of this nature will help small and medium-sized in a recession.
Chris Blair head of national retail at Savills, said: ‘This measure should be good for the retail property market overall, particularly in terms of boosting the level of confidence in retail companies who, by necessity, need to carry large stockholdings.
'Suppliers, including landlords, throughout the supply chain should feel more secure and the number of corporate insolvencies amongst retailers should reduce. A much needed boost for a sector of the market that is currently under significant pressure.’