Knowledge Centre
30th December 2009
2010 must see banks returning to their usual lending practices, according to the chairman of the Federation of Small Businesses (FSB).
Writing in his New Year message, John Wright said that small businesses must be allowed to put into practice their "fragile plans" for growth, and he challenged any incoming Government in the election year to make the "tough decisions" and let SMEs "get on with business as usual".
The message renews frequent calls from the FSB for increased lending to small firms, which date back to the Government's 'rescue' of the banks in October 2008. At the time, the group sought assurances that banks would make money available to sustain SMEs through 2009.
Wright said that ways in which the options for finance could be increased would be to introduce council-run banks - after the Bank of Essex model - or to bolster the flagging Post Office network by turning over a corner of each to a Post Office bank.
In addition, the chairman called for help from the Government for exporters and entrepreneurs, and even called for the reinstatement of the regional stock market system which fell out of favour in the 1970s, on the grounds that the London Stock Exchange was 'monopolising' equity finance.
"2010 must see the route to recovery," Wright added.
"Small businesses deserve a big vote of confidence and the sector in turn will return the compliment with jobs, guaranteeing a sustainable recovery."
According to BBC News, the Government said that it was "determined" to help small businesses next year, highlighting the 12-month extension of the Enterprise Finance Guarantee, which is intended to encourage lending by the banks.
However, other organisations have also warned of a difficult year to come.
The British Retail Consortium hailed a "better" Christmas, but said that retailers had expressed a variety of concerns about the 2010 trading environment, particularly relating to weak consumer demand and rising unemployment.
Meanwhile, the British Chambers of Commerce signposted "an uphill struggle in difficult trading conditions", with almost two in three businesses planning wage freezes or pay cuts next year.
IMAGE Martin Keene / PA Wire
FSB chairman lays down new year's challenge
Writing in his New Year message, John Wright said that small businesses must be allowed to put into practice their "fragile plans" for growth, and he challenged any incoming Government in the election year to make the "tough decisions" and let SMEs "get on with business as usual".
The message renews frequent calls from the FSB for increased lending to small firms, which date back to the Government's 'rescue' of the banks in October 2008. At the time, the group sought assurances that banks would make money available to sustain SMEs through 2009.
Wright said that ways in which the options for finance could be increased would be to introduce council-run banks - after the Bank of Essex model - or to bolster the flagging Post Office network by turning over a corner of each to a Post Office bank.
In addition, the chairman called for help from the Government for exporters and entrepreneurs, and even called for the reinstatement of the regional stock market system which fell out of favour in the 1970s, on the grounds that the London Stock Exchange was 'monopolising' equity finance.
"2010 must see the route to recovery," Wright added.
"Small businesses deserve a big vote of confidence and the sector in turn will return the compliment with jobs, guaranteeing a sustainable recovery."
According to BBC News, the Government said that it was "determined" to help small businesses next year, highlighting the 12-month extension of the Enterprise Finance Guarantee, which is intended to encourage lending by the banks.
However, other organisations have also warned of a difficult year to come.
The British Retail Consortium hailed a "better" Christmas, but said that retailers had expressed a variety of concerns about the 2010 trading environment, particularly relating to weak consumer demand and rising unemployment.
Meanwhile, the British Chambers of Commerce signposted "an uphill struggle in difficult trading conditions", with almost two in three businesses planning wage freezes or pay cuts next year.
IMAGE Martin Keene / PA Wire
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