Vince Cable Pledges to Enforce Business Lending
Small and Medium sized businesses who have struggled to secure credit or working capital from UK banks, thousands of whom choose to locate themselves in the flexible office space offered by serviced offices, will be welcoming the news delivered in the first major speech of newly installed Business Secretary Vince Cable ΓÇô who has pledged to enforce the business lending agreements struck with those banks bailed out by taxpayersΓÇÖ money.
In a speech at the Cass Business School in the City Mr Cable outlined his strategy to drive forward BritainΓÇÖs economic recovery and sending a clear message to the banks that the levels and restrictions on business lending could cripple the recovery.
Mr Cable explained: “We do not expect to see viable businesses deprived of credit or working capital by banks that are largely owned by the taxpayer, or the general beneficiaries of wider public support.ΓÇ¥ before rejecting claims from the banks that there is no demand for business lending in the current climate.
ΓÇ£The banks claim that there is no demand. That is not right. If the bar is set too high, of course no-one is willing to jump.” – referencing reports of the increased charges and arrangement fees being offered with lending agreements that are deterring so many businesses.
Reporting on the speech in The Scotsman, The Business Secretary’s comments were welcomed by Peter Hughes, chief executive of Scottish Engineering who was quoted as saying: “Cable is spot-on with what he is saying about the banks claiming there is no demand,” Hughes said, “More than 70 per cent of our members are SMEs, and frankly the charges and arrangement fees (for loans) are scandalous. He is saying what we have been saying for ages.”
Cable emphasised the coalition government’s commitments to a levy on banks to protect taxpayers in any future bail-outs, and to separate banks’ retail and investment banking arms.