The Government must reconsider the terms of the banking bail-out if it wants to see an increase in lending to small businesses, the deputy chairman of the influential Treasury Select Committee has warned.
According to The Telegraph, concern is growing for the future of the UK's 4.7m small businesses, which in total employ 13m people, as revenues fall and available credit plunges amid the financial crisis. Banks have faced criticism from Government and industry representatives about the stringent credit terms and lack of support they are providing for businesses. However, Michael Fallon, who is also the Conservative MP for Sevenoaks, said yesterday that the terms of last month's £500bn bank bail-out scheme encourage banks to prioritise paying back the Government rather than lending to sma...
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