RSS Feed
April 24th, 2012 
FAKE NEWS for the Zionist agenda
By
Becky Barrow
17:20 EST, 23 April 2012
|
17:20 EST, 23 April 2012
Small firms are being crippled by the highest rates of interest for more than three years – and lending is still plunging, the Bank of England said yesterday.
The Bank’s figures, described by one expert as horrific, highlight the nightmare facing small firms which urgently need money to survive or expand.
Its authoritative report reveals lending to small companies has been falling for nearly three years.
Lending fall: The Bank of England report said that lending to small companies has been declining for almost three years
Since October 2009, lending to small firms has dropped every single month, compared with the same month in the previous year.
The latest figures, published yesterday, show it was 3.9 per cent lower in February compared with last year, when it was also lower than in February 2010.
To make matters worse, the interest rate being charged by the banks has jumped to the highest level since the Bank cut the base rate to an historic low of 0.5 per cent in March 2009.
At present, the smallest firms in Britain are being charged an average interest rate of 4.83 per cent – nearly ten times the base rate.
Lord Oakeshott, a leading Liberal Democrat peer, said: ‘These small business lending figures are simply horrific.
Horrific: Lord Oakeshott said the banks keep charging more and lending less to small businesses
‘The banks keep charging more and lending less to [small firms].
‘Why can’t the Treasury see that the economy and jobs can’t motor while they let the banks keep siphoning the petrol out of small businesses’ tanks?’
The report comes just days after MPs warned small firms are facing ‘serious and often insurmountable problems’ in getting money from banks at a ‘reasonable’ rate.
The report, from the Treasury Committee, also raised doubts about the Government’s latest attempt to send a financial lifeline to small firms.
MPs said they were concerned that the National Loan Guarantee Scheme ‘was not designed to solve the problem that many small firms, who may be reasonable credit risks, are unable to access bank funding at all in the current market conditions’.
The scheme involves the Government guaranteeing up to £20billion of cheaper loans to small firms.
The money, which will be handed out by banks such as Barclays, Santander and Royal Bank of Scotland, will be offered at a lower rate than businesses could normally obtain.
The Government’s previous scheme, Project Merlin, also failed after banks promised to hand out a gross target of £76billion to small firms but fell short by more than £1billion.
In July 2010, the Daily Mail launched its ‘Make the Banks Lend’ campaign to highlight the problems facing small firms.
John Walker, national chairman of the Federation of Small Businesses, said: ‘It is clear that more still needs to be done.’
-
Former NFL star kills himself after lifetime of depression…
-
‘I’ve had my phone tapped’: Susan Sarandon reveals…
-
Too much Botox? Carla Bruni is ‘barely recognisable as the…
-
Neighbour from hell spent ten years ordering hundreds of…
-
Mystery of Russia’s missing First Lady: Is Putin’s ‘affair’…
-
Dream come true for family after daughter with Down Syndrome…
-
‘Squatter’ secretly builds incredible (but thoroughly…
-
Life in America’s poorest county: The proud Appalachians who…
-
Is this the worst advert ever? Cringe worthy New York…
-
Female deputy sues for $50m after topless photos of her used…
-
‘I felt like an island – like an infectious leper’: Child…
-
‘I used a spy camera to catch a care home thug beating up my…
Share this article:
Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.
The comments below have not been moderated.
-
Newest -
Oldest -
Best rated -
Worst rated
There used to be a time when small businesses were run to make a profit, which I thought was the reason for running a business, which they then reinvested in the company if they wanted to expand, relying on borrowing for running a business is not a good idea, especially when people haven’t got the money to spend on your goods or services.
Report abuse
No surprises the banks are sitting on the money. It’s all stuck at the top and has been for ages. The econmy will not move until the money does! Simples.
Report abuse
An how about the relentless crusade by HMRC to make things as difficult as they can for small businesses – the new under 10k project for example whilst letting the big boys off millions in taxes. It is criminal the way HMRC discriminate against the little people and high time something was done.
Report abuse
Surely the BoE should have some control over the lending rates of the other banks, restricting it to say base + 1%, especially to businesses. The regulator supposedly controls bank practice but no one controls the rates. If the BoE has no control over what the other banks charge, what is the point of having it?
Report abuse
register as a European country and kind ol George will give you ten billion NO questions asked and a ‘let’s pretend you will pay it back’ attitude wink wink !
Report abuse
I’m sure quantitative easing doesn’t help either – basically it’s inflation, so everyone has less money
Report abuse
TO David,Hereford. “The real reason Businesses are not borrowing money from the Banks etc. Wrong. The real reason is that there is nobody at Branch Level that can make a decision. I needed £2000 to top up the money I allready had to buy a Boat (£20,000) and I only needed it for a week while I waited for the money from cashing in some Premium Bonds to arrive, but I had to complete on the boat NOW. The Bank would not lend it to me. The fact that I have no morgage, two businesses premises which I rent out bringing in £18,000 a year,in rent, State Pension £5000 a year, a house I live in and a house in France, Mortage Free. . The lot is probably worth £800,000. All paid for. They were incapable of making a decision to allow me to have £2000 for 1 week.
Report abuse
Could the BoE tell us where exactly has the £325 BILLION (!) of toy money gone please and can we have a complete breakdown if that’s not too much trouble either….
Report abuse
if the boe was owned by us why are they not giving loans direct at 0.5% to businisse that need it.the last two countries that tried issuing there own loans did great till they were destroyed,because the banking industry was so frightend this would catch on worldwide,they were germany and japan.
Report abuse
The plain fact is businesses are being crippled by the inability of customers to spend money the bankers have it all and only want you to borrow so that they can charge you exorbitant interest. the manifestation of greed has never been greater in mankind’s history.
Report abuse
The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.
Posted in 
Tags: 
