Brian Binley MP for Northampton South has questioned Treasury Minister Mark Hoban during a statement made in the House of Commons on banking and regulatory reform about the Governments plans to get growth back into the economy.
Brian said: “I welcome the Minister’s statement, but may I remind him that the reorganisation of the regulators or, indeed, of the banking structure will do little to stimulate demand quickly?”
“Mortgages were down 9% in April on the same period last year and other sectors are seriously under pressure. Will the Government think more seriously about stimulating demand?”
The Minister responded by stating that it was an important point and one reason why it was important to reach agreement with the banks on Project Merlin was to send a clear signal to business that credit was available to viable businesses.
He continued to state that one concern is the amount of discouraged demand in the system and that by looking carefully at the relationship between banks and their customers, we can see whether banks are putting off businesses from making those applications.
Brian said: “I am pleased that the Minister recognised this as a serious issue and stated that he was concerned about the level of demand in our economy.”
“He is right that relationships between banks and their customers need to be looked at very seriously and there are a number of people in Northampton who have raised this concern with me on a number of occasions.”
“But I remain concerned that this statement simply is a rehashing of the Governments already stated policies put into place sometime ago which have simply not done the job.”
“The Government can and must do more to help, in particular those viable small and medium sized business which are crying out for capital to get the growth we need.”
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