The Government’s £20 billion package for small business is welcome, but more money could be needed, business leaders have warned.

In an effort to encourage banks to release more credit the state has effectively insured banks against small and medium shied companies defaulting on loan repayments.

Chris Wyatt, chairman of Wandsworth Chamber of Commerce, said: “This is welcome news, but which companies will have access to this, and how much they will be able to get we just don’t know yet.

“Let’s see what happens, any help is welcome but more may well be needed.”