Commenting on today’s Trends in Lending Report from the Bank of England, Ken Moon, Chairman of the Wessex Region of the Federation of Small Businesses, said:“Today’s figures from the Bank of England are disappointing and show that it is the smallest of businesses that are losing out. It is very bad news that the volume of lending to small firms fell in the three months to May – despite evidence in the ‘Trends in Lending’ report that there was a marked increase in demand for finance from the smallest of businesses.
“A recent Federation of Small Businesses (FSB) survey showed that a third of members that had been refused finance believe they have missed their growth opportunity, and 21 per cent have delayed their investment plans. It is the UK’s 4.8 million small firms – the country’s job creators – that will help pull the recovery onto firmer ground, yet they are being given a worse deal than larger businesses. The FSB remains concerned that until there is more competition in the banking sector, that this practice will continue and that no amount of lending targets will improve the situation.”