The government has been accused of failing in new attempts to secure an agreement with the UK's biggest banks over small business lending, it has been reported. According to the BBC, governance issues are jeopardising the provision of up to £200 million to the ailing sector in 2011.
Banking bosses are concerned about targets for lending to weaker businesses, believing such loans may represent a poor investment for shareholders. The news provider said an announcement on the lending programme was expected last week, but negotiations with the banks are now set to continue.
Gareth Osborne of APA said: “The Government has not done enough to force the cooperation of the banking sector. It is time for the Banks to recognise that small business investment is the only way to re-inflate employment and employment is the only long term solution for recovery. Unless they are planning on putting it all on a sure-thing at Ascot (and they tried that strategy with the sub-prime market and lost the lot!) government should toughen up and force the banks to act.”
Speaking to the BBC, Ed Balls, the shadow chancellor said: "At this critical time for our economy and for the prospects of a strong recovery, the banks should be playing their part in supporting small and medium-sized businesses".
Banking bosses are concerned about targets for lending to weaker businesses, believing such loans may represent a poor investment for shareholders. The news provider said an announcement on the lending programme was expected last week, but negotiations with the banks are now set to continue.
Gareth Osborne of APA said: “The Government has not done enough to force the cooperation of the banking sector. It is time for the Banks to recognise that small business investment is the only way to re-inflate employment and employment is the only long term solution for recovery. Unless they are planning on putting it all on a sure-thing at Ascot (and they tried that strategy with the sub-prime market and lost the lot!) government should toughen up and force the banks to act.”
Speaking to the BBC, Ed Balls, the shadow chancellor said: "At this critical time for our economy and for the prospects of a strong recovery, the banks should be playing their part in supporting small and medium-sized businesses".
APA
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