Our Managing Director, Peter Alderson, commented on George Osborne’s Autumn Statement, which contained some significant changes for SMEs' access to funding.
On the £4 billion extra in taxes on banks over the next five years, including the Bank loss-relief restriction, which will stop banks from offsetting crisis-era losses against current profits:
Peter says: “Banks are already restricted in how much lending they can do to small businesses due to capital holding requirements, which has played a role in the £100 billion fall in lending to businesses over the last five years. £4 billion more going to the Treasury won’t help the situation. Many SMEs would like to see more of that £4 billion ringfenced into initiatives designed to encourage more lending to small businesses.”
“For SMEs, the additional tax on banks makes fully exploring all their funding options, such as leasing, more important than it has ever been.”
On the Funding for Lending Scheme being re-focused entirely on SMEs:
Peter says: “We welcome the Chancellor’s decision to increase the incentive for the banks to lend to small businesses though the Funding for Lending Scheme – an increase in credit availability would be great news for Britain’s SMEs.”
“Combined with the commitment to alternative finance shown in the Small Business, Enterprise and Employment Bill, it’s great to see the Government taking action to get more funding to SMEs.”