Most small business owners in the South East see their retirement prospects receding into the distance as the economic gloom deepens, according to a new survey.

And while a similar number remain confident that they will not have to make job cuts in the near future, they are scathing about the Government’s attempts to persuade the banks to restore lending and credit facilities to SMEs, many of whom have also been hit hard by the falling value of sterling against the euro.

These are among the findings of a survey carried out by Clifton Asset Management (CAM), the UK’s leading alternative to banks for owner-managed businesses’ finance and strategic planning, who questioned more than 400 business owners in the South East about their retirement plans.

Neil Greenaway, managing director at CAM, said there had been an 18 per cent increase on the previous survey in the numbers of SME owners in the region who felt that their retirement was further away now than it was a year ago.

"In our last quarterly survey, 65 per cent of those questioned said their retirement had been put on hold, and this was in itself an increase on the previous figure of 57 per cent," he said.

"The fact that we have seen a second consecutive increase, to 83 per cent, provides compelling proof of the severity of the situation we now find ourselves in, and of the direct impact it has on people’s retirement plans.

"Indeed, a full 37 per cent of respondents say they now do not plan to retire at all, up from 20 per cent last time.

"We have heard a lot from the Government about the amount of pressure it is putting on the banks to start lending again.

"However our survey proves that this has yet to benefit those at the sharp end with only 10 per cent of businesses reporting any noticeable improvement in the situation, in terms of their bank manager being willing even to discuss existing or new credit lines."

"Of course it is also encouraging that 82 per cent of those who took part in our survey say they expect to maintain staff numbers at their current level over the next six months, although with the UK now having officially gone into recession, one wonders how long this optimism will last."

The Clifton Asset Management research also found that over a third - 40 per cent – of companies in the South East say they have been affected by the pound’s dramatic fall against the euro in recent months, while two-thirds (66 per cent) of small business owners say it is not currently viable for them to pay into a company pension scheme.

Other key findings include:

39 per cent of SME owners in the South East plan to retire between the ages of 55 and 65, down from 48 per cent in our last survey

30 per cent of respondents say they definitely will, or are considering, starting a new business when they exit from their current one

A bullish 51 per cent believe the South East is better placed than the rest of the UK to weather the recession

“Clearly the immediate outlook for the SME sector is not all bad and it is interesting that almost a third of the business owners who took part in our survey say they either may, or definitely will, start another business when they exit their current one,” concluded Neil Greenaway.

“Nonetheless, the key findings of our latest survey tell their own story, particularly in regard to people’s retirement and pension plans, and the absence of any sign of a thaw in the freeze on bank lending.

“Meanwhile to exacerbate the situation, it is deeply worrying that well over a third of businesses say their spending power has been further eroded in recent weeks by the fall of sterling against the euro.”