Small pick up for SMEs, but lending to businesses remains weak, says BCC

Commenting on the latest Bank of England figures on business lending, John Longworth, director general of the British Chambers of Commerce, said: “Although it is encouraging that lending to small businesses rose slightly in March, UK firms are clearly operating in a challenging credit environment. The new look Funding for Lending Scheme must work to rectify this and ensure that the money reaches fast-growing and relatively new firms, who continue to struggle to secure the credit they need.

“This is part of a wider problem around business finance. There has been a lot of talk about the business bank but it must be delivered with the sort of urgency and scale required for it to be a true player, and not a pretender, in the lending market. While not competing with commercial banks, the business bank should work towards plugging the gap in access to higher-risk finance that so many firms are unable to cross.”