8th October 2008
A plea has gone out to remember small business amid the news of the Government's bank 'rescue package'.
The Federation of Small Businesses (FSB) said that the time was ripe for a change in the way banks function and charge for small business services, and called for reassurances that firms would still be able to get loans on a normal financial basis.
This follows the announcement by the Government of a package worth up to £50 billion, with £25 billion available to the UK's eight largest banks and building societies to use to increase their capital, and another £25 billion on offer in exchange for preference shares.
The Government now hopes the banks will recommence lending to each other more freely as the system is bolstered by higher confidence - what chancellor Alistair Darling called "un-bunging a big problem".
FSB National Chairman John Wright said almost half of member businesses had seen hikes in the cost of finance in the last year.
"It is crucial in these tough times that small businesses have access to fair overdraft and loan rates," he added.
"Today's announcement should be coupled with assurances that more money will be made available to small businesses to help sustain them and get them through the next year."
IMAGELUKE MACGREGOR/AP/PA Photos
Bank rescue: 'Don't forget small firms' says FSB
The Federation of Small Businesses (FSB) said that the time was ripe for a change in the way banks function and charge for small business services, and called for reassurances that firms would still be able to get loans on a normal financial basis.
This follows the announcement by the Government of a package worth up to £50 billion, with £25 billion available to the UK's eight largest banks and building societies to use to increase their capital, and another £25 billion on offer in exchange for preference shares.
The Government now hopes the banks will recommence lending to each other more freely as the system is bolstered by higher confidence - what chancellor Alistair Darling called "un-bunging a big problem".
FSB National Chairman John Wright said almost half of member businesses had seen hikes in the cost of finance in the last year.
"It is crucial in these tough times that small businesses have access to fair overdraft and loan rates," he added.
"Today's announcement should be coupled with assurances that more money will be made available to small businesses to help sustain them and get them through the next year."
IMAGELUKE MACGREGOR/AP/PA Photos
Tags: Regulations
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