- British banks and building societies drew down £8.4bn in Q4 2014 from the Funding for Lending Scheme.
- Net lending to businesses fell by £6.9bn in Q4 2014.
- Net lending to SMEs fell by £810m in Q4, compared to a contraction of £100m in Q3.
Commenting on the Funding for Lending figures published by the Bank of England today, Dr. Adam Marshall, Executive Director of Policy and External Affairs at the British Chambers of Commerce said:
"It is disappointing that lending to SMEs in particular continues to contract despite the best efforts of the Funding for Lending Scheme. Although large businesses have little difficulty in accessing a wide range of funding options, young, fast-growing businesses across the UK are still finding it unacceptably difficult to access the finance they need to grow their business.
“There is urgent need for greater support for the businesses that will create wealth and prosperity in the future. This means increasing access to bond and equity markets, and building a bigger, better British Business Bank. Although all parties realise we have an access to finance problem, more radical solutions need to put on the table in order to help British businesses grow in the long-term."