The Government are currently taking steps to ensure that more banks lend to SMEs in order to boost the economy. George Osborne is expected to urge the UK’s biggest banks to increase the competition in lending to small and medium sized businesses, and make Britain’s SMEs their number one priority. But have we heard this all before?
The announcement will accompany the publication of a survey on the treatment of SMEs by large high street lenders which is expected to reveal that small businesses feel shut out by banks when it comes to lending. Banks will then be ranked on how well they are meeting the needs of SMEs and this information will be available through an independent impartial website, backed by the Government, for prospective lenders to examine.
This move accompanies the Prime Minister’s recent employment allowance scheme and is part of a range of measures aimed at improving the success of small businesses. SMEs are still considered the lifeblood of the British economy, and assisting small businesses wherever possible is predicted to improve unemployment figures and prevent business closures. In addition, encouraging competition between high street banks in regards to SMEs is intended to create a fairer lending system for everyone who needs it.
A Treasury spokesman has said, “The Government wants Britain’s banks to do more to put Britain’s SMEs at the top of their priority list, and this new survey and ranking system will provide the means by which we can see who’s up for the challenge and who isn’t.”
While this announcement was predicted to happen on Wednesday 28th May, there has been little evidence to suggest that the website has gone live, nor that Osborne has issued a statement to the banks.
If you’re a SME and are curious about how an increase in lending to small businesses could help you, contact MCC. We can discuss any changes with you and our team of experienced professionals can help you make the most of your business during this continuing tough economic climate. Send us an enquiry today through our contact form, or call a member of our team on 0161 707 1500.