Small business leaders renew calls for credit
Feb 17 2009 by Graeme King, The Journal
Sarah Green, regional director of the CBI in the North East, said: “It’s early days for the loan guarantee scheme, and as well as lending from the official scheme, there is evidence of increased lending from the banks independently. Like all the measures introduced recently, the loan guarantee will take time to have an impact.”
The CBI yesterday called for improved access to finance, after its own research found 63% of firms seeking new finance, said availability had worsened during the past quarter.
There was extensive criticism yesterday of several measures put forward by Chancellor Alistair Darling to help the UK through the recession.
His policy of introducing a 2.5% cut in the rate of VAT was ridiculed again, this time by the British Chambers of Commerce who said 92% of their members did not want it, including 16% who said it had been a burden to implement.
Meanwhile the CBI also claimed Mr Darling would need to borrow a further £100bn over the next three years - beyond what he has already committed to.
Ross Smith said there was a need for longer term thinking.
“The Government needs to concentrate on creating the macro economic climate that will give confidence back to businesses. The budget will be critical for that.
“We need measures to address immediate problems, but we also need to focus on the long term, so businesses can see where the economy is going over the next few years.”
