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Treasury's business lending targets missed, report claims

Date Added: 21/04/2011  

A new report has been critical of the Treasury's inability to make banks in the UK increase their business lending.

The Public Accounts Committee (PAC), a watchdog for public spending, stated not enough has been done by the coalition government to support companies.

Margaret Hodge, chair of the PAC, said: "The Treasury appears to lack strong determination to use its influence to increase lending to small businesses.

"We expect it to find effective mechanisms to ensure the banks meet their lending commitments."

A few months ago, the coalition government put together a deal with Britain's major banks relating to business lending targets, but according to the PAC this has not been met.

Andrew Bullard, head of business at invoice finance and factoring broker Cashflow UK, recently stated the government is not providing any answers relating to business lending.

He claimed the Enterprise Finance Guarantee and other initiatives are not close to going far enough to be helpful for small businesses.

Posted by Michael Beam 

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