The run-in to Christmas could be a “make or break time” for some businesses in Witney as the credit crunch and economic downturn hit the high street.

That is the hard-hitting message to shoppers from the chairman of the town’s chamber of trade – backed up by Witney MP and Tory party leader David Cameron and the newly formed Witney Independent Traders’ Association.

Lesley Semaine, who runs the Royal Oak pub, in High Street, said: “Now is the time when local businesses need support. If people shop locally it helps keep the town’s economy buoyant and people in jobs.

“For the retail trade, Christmas is the busiest time of the year and for some it can be a make or break time.”

In the last week, the Bride and Beautiful shop in Wesley Walk has closed. Owner Donna Lee Newcombe said: “It is tough out there at the moment. Cash flow is a real problem.”

Traders, councils and the chamber of trade have come together for a promotional campaign during the Christmas run-in, with over 5,000 “Stay longer in Witney” leaflets to be distributed.

Their message also has the support of the Oxfordshire Federation of Small Businesses, whose chairman Barry Wheatley has visited the town for a Keep Trade Local campaign.

He said: “Over 99 per cent of businesses in this country are small.

“We have around 200 members in and around Witney.

“If you want them to stay, support them.

“Business is crucial for many of them at this time of year – they are being hit by bank overdraft rates going up and difficulties with access to funding.”

Mr Cameron underlined the ‘shop local’ message when he visited the town to talk to small shopkeepers and put his hand in his pocket to buy a hat for his son Ivan. As he was chatting to Janette Reed at her shop, Cotswold Kids, in Wesley Walk, he picked out the woolly hat for his six-year-old, saying: “Everyone should spend locally in the run-up to Christmas.”

He added: “The big message I am getting loud and clear is that they need access to money and that the banks should free up lending to support them in difficult times.”

The traders association now has about 30 members. Ms Reed said that while local shops might not have the cut-price bargains of chain stores, they needed suppor to stop Witney becoming a clone town. She said: “People have got to get used to the idea of paying a fair price.

“For people like us, copying the knock-down practices of some of the big stores doesn’t pay the rent.

“Times are tough.

“In my line, childrenswear, many have gone under in the last year, but we do give good value and service.”

witney@oxfordmail.co.uk