BBA chief executive Angela Knight said:
“This was a Budget for business: it was about making it more attractive for businesses to do business here in the UK. It was also about giving businesses the confidence to invest in their futures and giving their customers the confidence to spend again. Crucially it underlines the fact that bank finance continues to be available for viable businesses.
“It was also about giving our international trading partners confidence that the country is fully focussed on restoring financial stability and promoting economic recovery. The UK’s banks are fully committed to playing their part in bringing this about.”
On the National Loan Guarantee Scheme
“Banks are committed to providing the UK’s businesses with the finance they need to develop and grow, and we welcome the National Loan Guarantee Scheme as an additional support for businesses to help them access cheaper finance.
“A number of UK banks are participating in the scheme to help their customers by offering them cheaper loans – this is about encouraging growth and new lending. Banks know it is their job to help viable firms be successful and also recognise the part they have to play in supporting the UK economy.
“The UK’s lending market is very competitive – and with support through schemes like the NLGS for even lower cost borrowing, now is a very good time for UK businesses to speak to a bank about their financing needs.”
On tax reform
“The banks are committed to playing their part in restoring the public finances through the many different taxes they pay. The Government has previously said that it both wants the bank levy to raise a specific amount - £2.5bn - and that any reduction in corporation tax will be offset by an increase in the levy. The corporation tax cut would reduce the amount raised, so as before the percentage has been raised to correct this. The end result is that the banks pay the same."
Background
The Budget Red Book (paragraph 1.233) also recognises the BBA's work to assist small businesses:
"In addition, the Government ... welcomes commitments by the banks to: publish an independent review of the lending appeals process; improve training for relationship managers; review the effect of credit ratings on start-ups and businesses switching banks; establish a system for referring unsuccessful loan applicants to Community Development Finance Institutions; and extend their national mentoring scheme. These measures build on the work of the British Bankers’ Association’s Better Business Taskforce."
