ON a visit to Glasgow yesterday, the Chancellor heard some economic home truths of how the downturn is seriously affecting workers, pensioners and small businesses .

ON a visit to Glasgow yesterday, the Chancellor heard some economic home truths of how the downturn is seriously affecting workers, pensioners and small businesses .

Alistair Darling met a group of voters from the east end of the city at Glasgow Fort shopping centre and answered their concerns over the economy.

He heard from 74-year-old Betty Priesty, from Barlanark, who told him how her son, Edward, was forced to close his electrical contracting business.

Mrs Priesty said: "The big firms were unable to pay the small firms for work they carried out, and they went out of business four weeks ago."

She said they blamed the banks for cash flow problems and asked the Chancellor what he could do to make sure bills were paid promptly.

Mr Darling replied: "The Government said we will pay small firms who supply us within 10 days of invoice. We want to encourage bigger companies to pay their suppliers quickly because it is in their interest to keep them afloat.

"The banks are a bigger problem. We have put money into the banks and if the HBOS/Lloyds-TSB merger goes ahead they will be expected to lend as they had previously. However, there is no doubt firms are finding it difficult. We want to make sure that, if firms need further finance, it is available."

Others asked him about the effect that low interest rates have had on savings, and about help for people made redundant.

Mr Darling had accepted an invitation to visit the area from Baillieston MSP Margaret Curran. He spent 40 minutes with the group before a short walk at the centre.

Earlier in the day, Mr Darling opened Glasgow's new Construction Skills Academy, which trains apprentices in construction trades, and said the facility was exactly what cities should be doing to protect the future of young people and to ensure a skilled workforce for better times.

The centre, in a converted primary school in Laurieston, will train up to 400 people a year once fully operational.

Steven Purcell, Glasgow City Council leader, said: "The mistake Glasgow made in the past during difficult economic times was in failing to invest for the future."