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Spelman hits out over bank lending to small businesses

Meriden MP Caroline Spelman has hit out at the banks after new figures revealed they are still not lending to small businesses

Meriden MP Caroline Spelman has hit out at the banks after new figures revealed they are still not lending to small businesses.

Her comments come seven months after the Government made available an £80 billion lending scheme - yet Bank of England figures show net lending to small and medium-sized firms is falling.

“This is very disappointing and I am concerned about small businesses and start-ups that need loans to continue and expand: their success is vital for economic recovery,” she said.

“The Government’s Funding for Lending is an excellent scheme and the fault lies entirely with the banks for not making better use of it.”

The figures shows that between August and February, net loans to small and medium-sized firms were negative every single month, falling by a total of £2.8billion.

The £80billion Funding for Lending scheme was aimed at solving the country’s small business and mortgage lending problems by giving lenders access to cheap finance.

Latest figures from the Bank of England show £13.8billion has been handed out.

“I would be interested to hear from any constituent who has presented a proper, realistic business plan to a bank since last August and has been turned down,” said Mrs Spelman.

“Please email me with details at caroline@carolinespelman.com.”

 

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