DIRECTORS of small companies in the North-west believe the September 11 terrorist attacks in America will push the UK into full-blown recession.

Research published by Royal Bank of Scotland Commercial Services shows that 65 per cent of those quizzed fear the worst.

Sixteen per cent were having to make redundancies in the run-up to Christmas and eight per cent were considering salary cuts or pay freezes.

But 62 per cent thought Britain was right to support the US military action and provide resources.