08 October 2008, 18:47 PM
  • The Federation of Small Businesses (FSB) has called on the Government to put small businesses at the forefront of the bank restructuring programme.

The organisation believes that today’s announcement by the Government that it is making £50bn available to the UK’s top eight banks should be coupled with reassurances that these financial institutions will extend loans to small business on a normal financial basis.

“Now that the Government has a big stake in the banks it is an ideal opportunity to enter into a constructive dialogue with them about their commercial practices and their charges regarding small businesses,” explains FSB national chairman, John Wright. “Almost half of our members have seen an increase in the cost of finance over the last year. It is crucial in these tough times that small businesses have access to fair overdraft and loan rates. Today’s announcement should be coupled with assurances that more money will be made available to small businesses to help sustain them and get them through the next year.”