Business finance system broken
· Total business lending (loans and overdrafts) fell by £3.8bn in August 2013, the largest fall since December 2012
· SME lending fell by £0.7bn in August 2013
Commenting on the latest Bank of England figures on business lending, Dr Adam Marshall, Director of Policy and External Affairs at the British Chambers of Commerce (BCC) said:
“These figures are extremely disappointing, and show that Britain’s business finance system remains broken.
“While bigger and older companies can get finance when they need it many young, dynamic, and fast-growing businesses are still frozen out. When these innovative companies can’t get the finance they need, they don’t expand.
“To help new and growing companies, we need a British Business Bank with far more scale than the government’s current proposals. If it is to make a difference, the Business Bank also has to have the ability to work directly with businesses on the ground, rather than through the existing banks.”