GOVT FAILS ON BANK LENDING

Bank lending to businesses fell by £4.8 billion in the latest quarter (December 2012 to February 2013).

The Government’s schemes to boost small business lending have failed. The Merlin targets were missed; the national loan guarantee scheme discontinued after less than 6 months. Funding for Lending has not prevented lending from falling.

Their British Business Bank is too small and developing too slowly to help. It is being run by civil servants in BIS and has just £300m to invest in this Parliament.

The Government has failed to meet the proposals of Labour and the independent Parliamentary Commission on Banking Standards to legislate to break up the banks if we do not see cultural change.