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FSB: Small businesses must be recognised in bank rescue package

The Federation of Small Businesses (FSB) yesterday called on the Government to put small business at the forefront of the bank restructuring programme.

With millions of small businesses strapped for cash and seeing an increase in costs and a decrease in trade, the FSB argues that it is vitally important for the relationship between banks and small businesses to be put on a sounder footing.

At a time when bank charges are rising for small businesses this is an opportunity to include specific policy measures for business owners in the rescue package.

FSB Chairman John Wright said that yesterday’s Government announcement, that £50 billion will be made available to the UK’s top eight banks should be coupled with reassurances from these very same banks that they will extend loans to small business on a normal financial basis.

Commenting on behalf of Britain’s 4.7 million small businesses, he said: “This is an ideal opportunity now that the government has a big stake in the banks to enter into a constructive dialogue with them about their commercial practices and their charges regarding small businesses. Almost half of our members have seen an increase in the cost of finance over the last year. It is crucial in these tough times that small businesses have access to fair overdraft and loan rates.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .