Is Oxfordshire in an economic bubble' which will allow it to escape the worst of the credit crunch? That was the question posed to local business people in a round-table discusssion following the publication of the Oxfordshire Business Confidence Index.

The survey, produced by Challenger Brand PR and In Business, showed that a large majority of businesses were planning to invest more in new projects and business initiatives this year, despite huge uncertainty about the future direction of the economy.

The experts assembled felt that most companies were nervous about the next 12 months, but realised that they would fail to compete unless they invested in the future.

Ben Sayer (pictured above), of Banbury motorsport company Prodrive, agreed with the results of the survey, which revealed that 64 per cent of business people found the economic outlook difficult to assess. He said: "It is too soon to say. The credit crunch has been going for too short a time and the effects haven't been felt yet."

However, he feared that Oxfordshire's motorsport industry, which employs up to 10,000 highly-paid people, could be hit by the economic downturn.

He added: "Judging by what happened last time, motorsport will be hit hard very quickly. One of the first things that companies cut back on is promotion. If you are spending a few million pounds on putting your brand into motorsport, it is an easy saving to make."

Business consultant Nigel Wild said: "It is still very difficult to tell what is real and what is smoke and mirrors. The impact on the real economy is difficult to assess."

Peter Angel, of law firm Manches, said: "If people can't get credit, the impact on consumer confidence over the next 18 months will be substantial."

Graham Jones, of the business pressure group Rox (RescueOxford), warned that the downturn would put a question mark over large new developments which were urgently needed to revive Oxford.

"They have been trying to develop the Westgate for 14 years and there must be a question mark now about whether they will go ahead." However, at least one company could see big opportunities from the downturn . . .

Ross Elder (the new Oxfordshire Young Business Person of the Year), of Holiday Lettings, said: "Our company helps people make more money out of their holiday properties, which they maybe haven't marketed effectively before. We are expecting to grow from 50 staff towards 100 in the next 12 months. People will give up their car before they give up their holiday."

Henry Mendus, of Darbys Solicitors, added: "We are all waiting to see what happens. Residential conveyancing is obviously slowing down, because people are not buying houses. But we are wondering where it will end - everyone is nervous."

More than half of respondents said they were planning to cut back on staff training and development - an admission that worried our panel.

Oxford-based Roger Mumby Croft, of Warwick Business School, said: "There is a lot of research showing that companies that continue to invest in education and training do better and are more competitive."

Mr Angel agreed. "It is a safe option if you want to save money, but it is an option that should be resisted. It is absolutely central to one's ability to compete."

The panel was more divided about the need to invest in new projects - 61.5 per cent of respondents are expecting investment to be higher this year.

Mr Angel felt companies were less likely to expand by acquisition, while Mr Elder felt some investment could have an immediate impact on the bottom line.

And is Oxfordshire a special case, because of its high level of high-tech companies? The survey showed opinion was equally divided.

Mr Wild said: "There is still no shortage of new technology or good ideas, but no-one is interested in funding something that isn't going to get to market for seven years or more."

He said investors now wanted technology which would produce income within five years.

Mr Mumby Croft believed universities needed to do more to take their inventions out into the commercial world.

The final question in the survey - had the 24/7 news culture fanned the flames of the credit crunch? Most respondents (54 per cent) thought it had.

Mr Mumby Croft reminded the panel that the term credit crunch' was invented by the Financial Times newspaper.

Mr Sayer said: "There are a lot more competing media now than there were during the last downturn, and everyone is having to have a new story.

"If something small happens, like a small change in house prices, suddenly it is a big headline, because they need to sell newspapers. However, it is true that there is no smoke without fire."

However, Mr Elder, whose previous job involved selling mortgages, said the media had a duty to warn people of what might happen.

He warned: "It is amazing how quickly people forgot what happened last time."