The news comes on the day the Bank of England has announced it’s injecting £15bn into the wholesale money markets to try to relieve the liquidity squeeze.

“We are working with the major Small Firms Loan Guarantee lenders to ensure SME capital remains readily accessible,” Hutton said, adding that the UK has “one of the world’s most innovative and flexible finance markets”.

Hutton also noted the importance of entrepreneurs to the long-term health and vitality of markets because the latter “fundamentally depend on risk taking and entrepreneurial behaviour”.

He told the audience that the government must be on the side of entrepreneurs. “We have to work with you to create the right conditions for business in the future,” Hutton said.

Policy makers have long been criticised for not having enough experience in running a business, meaning they’re out of touch with entrepreneurs. Hutton agreed: “Few in Whitehall have experienced the highs and lows in trying to run their own business.

“You know what it’s like to take a calculated risk.”

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