Brian Binley MP for Northampton South and Chairman of the All Party Parliamentary Group for Small Business has today quizzed the Deputy Governor of the Bank of England, Charlie Bean and Business Secretary, Vince Cable over the issue of bank lending to small and medium sized businesses.
Figures published yesterday by the Bank of England show that in the first quarter of 2011, the top five banks loaned £16.8 billion to SME’s, £2.2 billion behind the target amount agreed under project Merlin- an agreement between the Government and the banks to increase lending to SME’s.
Brian said: “I think we need to put the emphasis on getting demand back into the economy once again. We need to be innovative and forward thinking in the way we create that demand.”
“For example if the Government were to introduce tax relief measures to encourage first time buyers to enter the market or reduce VAT on household goods, this could create some real confidence within the economy and encourage people to spend.”
“Banks will then be more willing to lend to small and medium sized businesses and those businesses will be more willing to borrow. Most importantly we must work with small and medium sized businesses and the banks to get Britain moving again.”
There is strong support in both the House of Lords and the House of Commons on the issue of finance for small businesses.
Brian said: “I was delighted to be able to host the meeting in my role as Chairman of the Small Business Group and I am especially delighted that my colleagues in both the Lords and Commons shared my enthusiasm for this subject.”
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