The South West Regional Development Agency has welcomed measures to help small and medium-sized businesses in Bristol.

Business Secretary Lord Mandelson introduced measures on Wednesday including a £10-billion 'working capital scheme' for banks, designed to secure up to £20bn of short-term loans for businesses with a turnover of up to £500m.

John Savage, board member of the agency, which works to improve the prosperity of the West, said: "While many businesses are feeling the pinch, there are a good number that would like to expand over the next 12 months.

"It is crucial that these companies are given the means to fulfil their ambitions in preparation for economic recovery."

He was speaking on a visit to Taste Tech, a Brislington-based food ingredients and flavourings manufacturer which employs 33 people and has a turnover of £2.3m.

Taste Tech managing director Janis Sinton said: "As a growing business, our working capital requirements are constantly increasing.

"We welcome the support these initiatives from the Government will give to banks to assist small and medium-sized businesses such as ours to reach their potential.

"We have an appointment with our bank manager this Friday and are looking forward to some fruitful discussions."