4R Blog

RSS Feed

BCC urges MPC to boost business lending

Date Added: 07/01/2013  

The British Chambers of Commerce (BCC) has called on the Bank of England's Monetary Policy Committee (MPC) to take action to improve business lending in the UK.

Many small firms are at risk of being served with a winding up order as they cannot secure the loans they need to ensure their survival and the BCC wants steps to be taken by the MPC.

Chief economist at the BCC David Kern stated the body is expecting the group to make no changes to interest rates for the foreseeable future, while it is also predicting the quantitative easing programme is going to be held at £375 billion.

He suggested that the coming six months is going to be a crucial time for the MPC - and the UK economy as a whole - due to the fact there will be a new governor of the Bank of England.

Mervyn King is being replaced by David Carney and the changeover is set to be completed over the course of the summer, which may lead to some upheaval at the bank.

"During this crucial period, the Bank must focus all its attention on ensuring that the Funding for Lending Scheme gets resources through to viable companies and on shoring up business confidence," said Mr Kern.

He added demands for extra quantitative easing from the MPC are likely to grow louder over the course of the coming weeks, as growth of the economy remains weak.

Interest rates have been held by the MPC for close to four years, but the committee has regularly voted in favour of pumping more money into the economy in a bid to stimulate growth.

However, many companies have complained that this extra cash has not filtered down through business lending systems to them, preventing them from being able to create new jobs.

Get the Help You Deserve

0800 90 20 123

Urgent Help Call 24/7

020 7183 2606

We'll Call You

Request a Callback