Bank of England figures released today showed that lending to ‘non financial corporations’ tumbled by a record £14.7bn between April and June, the biggest slump since it’s data began in 1997. Heather Kidd said that this is crippling many small business in the Ludlow constituency and has called on banks to support local businesses more.
Reviewing the latest sets of results from Britain’s leading banks she echoed many of the comments that Vince Cable, Liberal Democrats financial guru has said and commented:
“There is clear evidence that many local businesses are being starved of credit and are struggling as a result. People will rightly be angry that, whilst some banks are reporting bumper profits, many businesses continue to suffer as they cannot access affordable loans. With several banks owing their very survival to taxpayer money, they must set a lending policy in line with the public interest. It is a scandal for banks to send good businesses to the wall by withdrawing credit or by creaming off extra profit by keeping the interest rate high.”