Wycombe businesses hit by news of a sudden downturn in the economic climate were given a second hammer blow last week with information that the European Parliament has voted to scrap the UK's opt-out of the Working Time Directive.

There was an immediate call to reverse the decision by business leaders including the Thames Valley Chamber of Commerce & Industry. News of 60 redundancies at commercial services giant D&B, the collapse of an 140-year-old furniture business and uncertainty for the local branch of RAC coincided with a vote in Brussels leaving the fate of the Working Time Directive in the UK in the balance.

There was fury at the Chamber's offices in Slough. Christina Howell, head of external affairs, instantly prepared a report for her group meeting on Wednesday night saying: "We urge the UK government and other EU leaders to reverse the parliament's decision. The great strength of UK economy is the flexibility of the labour market. Employees also value opt-out to work longer and earn more money."

She believes the decision is a blow for business and future prosperity. "It flies in the face of the EU's decision to focus on growth and jobs. If the opt out has been abused this must be addressed but this is no justification for scrapping the opt out," she said.

She was shocked all 19 MEPs who voted to scrap the UK opt-out on the directive over a three-year period. She explained that if it goes ahead employees will be restricted to working an average of "only" 48 hours per week.

The European Parliament justified ending the opt-out on health and safety grounds. She pointed out that the UK has the third best health and safety record in the EU and was mystified by the decision.

The Institute of Directors says the news was "a hammer blow to the economy" and predicted that the loss would have a dramatic effect on the UK's competitiveness.

Miles Templeman, director general of the IoD, said: "With Europe facing massive economic challenges from China and India, we should be looking to make our labour markets more flexible not less. Business is trying to face up to the problems of the 21st century, but MEPs have voted for a policy straight out of the 1970s."

Before the news of the directive was known, local Business Link chief executive Graeme Finch urged companies to keep their nerve. He believes closures and redundancies are not pointers to recession but typical of the usual ups and downs.

"It is easy for the press to talk down everything rather than talk things up. There are just as many companies doing well in our locality as badly. I do not believe we have reached recession," he said.

He insists local industry and commerce are thriving and points to an upturn for niche- market IT, plenty of work for start-ups, solution-based pro-viders and innovation-driven companies.

Mr Finch, who has a manufacturing background, agrees that manufacturers competing with cheap imports from China, Korea and the Eastern bloc are having a tough time. He wasn't surprised to learn that yet another Wycombe furniture business, William Bartlett, is holding a closing-down sale and will be out of business with the loss of 80 jobs by mid summer.

He said companies selling middle ground bulk goods will have difficulty competing with cut price furniture retailers. Top of the range consumer goods are still in demand with consumers and he says there are early signs that niche market IT is making a come back "There is a great deal of innovation in the area which isn't restricted to hi-tech. Innovation is doing something different and there are plenty of businesses doing just that."

He agreed that clothing retailers nationally are suffering but points out that some areas of retailing have never had it so good. In the last few weeks Tesco has announced huge increases, leaving other food retailers in their wake.

Colin Fletcher, managing partner of Wycombe based Haines Watts Chartered Accountants said: "It is obviously sad to learn of any business closures, especially when they are locally based, and there is a temptation to blame the politicians or the economic outlook for their demise.

"But we live in a world of change, and the economic picture will always change too. Businesses need to be vigilant, particularly to ensure that their cost basis allows them to remain competitive. We are currently seeing an increasing number of local companies outsource their manufacturing overseas. At the same time, new businesses are starting up or moving into the area and the planned redevelopment of High Wycombe will benefit from this trend in the future."