Credit Crunch

The head of a Cornish haulage firm, Julian Chenoweth, is calling on the government to do more to help small businesses.

Julian, who runs a fleet of 12 vehicles from the Roseland peninsula, says his business has been hit by a combination of high fuel prices and the slump in the building industry.

He says fuel is costing the firm an extra £5,000 a month. He's laid off two staff in the past month.

"Our fuel bills have gone up quite considerably per month which has had a knock-on effect because we've had then to put on extra percentage for our customers and they in turn for their customers and so on.

Julian's company is feeling the pinch

"The domino effect has begun. Payment has slowed up, which in turn makes us slower to pay our creditors. Yes, it's the domino effect," he says.

Julian Chenoweth's company, Maen Karne, works with builders merchants and businesses involved with aggregates. He says people who're considering non-essential work on their houses like extensions or new patios are putting it off.

"Fuel was the start of it to be fair and then with the credit crisis looming and coming in all at the same time it's knocked everybody's confidence.

"Everybody's holding onto their money because they're worried. They're jittery at the moment," says Julian.