Commenting on the unveiling of the Bank of England/HM Treasury Funding for Lending scheme today, Dr Adam Marshall, Director of Policy at the British Chambers of Commerce, said:
“Exceptional times call for exceptional measures, especially when it comes to bolstering the flow of credit to businesses in the real economy. We hope this intervention will succeed in incentivising lending to viable firms that want to invest and grow.“Businesses will want to understand how Funding for Lending will benefit them in a real and tangible way, so we will wait to see how the banks intend to make this increased lending capacity a reality. We will be watching closely to see if this has any positive impact for new and growing businesses, which have largely been frozen out of the market for finance in recent years.
“The Bank of England and the government must make sure this is not another false dawn in the provision of business finance. As they roll out Funding for Lending, they should be even more radical and plan for the creation of a bona fide business bank in the medium to long-term.”