FUNDING FOR LENDING CHANGES MUST ENSURE CAPITAL REACHES GROWING FIRMS
November 29 2013.


The government and the Bank of England has announced changes to the terms of the Funding for Lending Scheme (FLS) extension to re-focus the incentives towards supporting business lending in 2014.


Commenting, John Longworth, director general of the British Chambers of Commerce (BCC), said: “The re-focus of incentives in the Funding for Lending scheme towards supporting business lending shows that the government and the Bank of England recognise the difficulties faced by firms across the UK in accessing the finance they need to grow.

“The real test for Funding for Lending has always been whether it is able to get credit flowing to young and fast-growing companies and long term, non equity capital to firms that want to expand. Unfortunately any improvement in credit availability is only being felt by ‘safe bets', while younger, growing firms continue to struggle to find the finance they need to expand.

“Policymakers need to go further to help the UK’s new and growing companies by delivering a British Business Bank with far more scale than under the government’s current proposals.”