.jpg)
Chancellor George Osborne made his Autumn Statement to the House of Commons today, 29 November 2011.
Commenting on the Statement, BBA chief executive Angela Knight said:
“This Autumn Statement makes a serious addition to the large sums already being lent to the business community by the banks. With the eurozone crisis putting lack of confidence at the top of the list of concerns in every comprehensive survey of business, this Statement makes it clear that money is available for viable businesses.”
On credit easing
"This initiative give business what they seek by making more finance available and providing a wider choice of options. They use the Government's positive credit rating to make the finance cheaper. The banks will play their part in making this happen - over and above the increased lending that is taking place and the other commitments the industry has made both to business and Government. Businesses are currently borrowing around £664 billion from the UK's high street banks. Independent research has found that the main disincentive to borrowing is continuing concern about the economy. The times are uncertain and the more confidence that can be given about the supply of credit the better."
On restoring business confidence
"One of the consequences of the ongoing criticism of the banks has been that small businesses have been discouraged from applying to them for credit. Restoring confidence in the lending process has therefore become increasingly important. In the past few months alone, the banks have created and financed a UK-wide network of 11,000 business mentors, an independently-monitored appeals process, a £2.5bn Business Growth Fund for equity investment in growing businesses and conducted 17 roadshows where representatives of more than 2,000 businesses have gathered to meet with bank executives. The banks are also working with Community Development Finance Associations (CDFIs) to provide essential finance for higher-risk start-ups.
“Together with today’s announcements from the Government to support businesses, these initiatives should provide companies of all sizes with the assurance and confidence to borrow for growth.”
On the bank levy
"The banks are committed to playing their part in restoring the public finances through the many different taxes they pay. But a stable tax regime is important: banks of all nationalities do business around the world from here and they pay tax here. Certainty is an important requirement."
