Banks 'must lend more' next year

There should be more competition in the banking sector with more lending from non-UK banks made available to small firms, a group has said.

In its new year message, the Federation of Small Businesses (FSB) called for banks to return to their "normal lending criteria".

There are five million small businesses in the UK. The FSB represents 215,000 small firms across the UK.  "2010 must see the route to recovery," said FSB chairman John Wright. "Small businesses deserve a big vote of confidence and the sector in turn will return the compliment with jobs, guaranteeing a sustainable recovery.  2010 may be a general election year, but for small firms, it will be business as usual as they strive to complete the route from recession and back into recovery."

A Department for Business spokesman said: "We have extended the Enterprise Finance Guarantee for a further 12 months to encourage additional bank lending to viable smaller firms and announced that businesses will be able to continue to defer tax payments to help with cash flow as they prepare for growth.  We are working with the FSB to offer up to 10,000 graduates a chance to boost their future employability through internships in small and micro businesses."

Posted at 07:13PM Dec 30, 2009 by Kelly Board in The Economy  |  Comments[0]