Small companies in London are being hit by a fall in trickle-down business from cash-strapped City institutions, according to the London Chamber of Commerce and Industry.

The body that represents 3,000 companies in the capital warned that more smaller businesses were likely to feel “painful knock-on effects” as a result of the tough times in the City and Canary Wharf.

A recent survey by the LCCI found that 60 per cent of its members expected economic conditions to worsen, while 43 per cent said their cash flow was down compared with just three months ago.

Financial Times