04/03/13

  • British banks and building societies drew down £9.5bn in Q4 2012 from the Funding for Lending Scheme.
  • Net lending decreased by £2.4bn in Q4 2012.

Commenting on the latest figures on the Funding for Lending Scheme (FLS), Dr Adam Marshall, Director of Policy and External Affairs at the British Chambers of Commerce (BCC) said:

"Although the fourth quarter is typically a subdued period for lending, the latest update is clearly disappointing, with net lending contracting in the final three months of 2012. The real test for the FLS has always been whether the funding reaches fast-growing and new firms, and unfortunately the latest Bank of England Credit Conditions Survey confirmed that small firms continue to be left out in the cold."

"Against this backdrop, it is clear that the journey of the Business Bank from the drawing board to the real world must begin in earnest, as this would be a game changer for young companies looking to expand and drive the recovery."

Ends

Notes to editors:

The BCC’s Annual Conference, entitled Business is Good for Britain - Building a New Model Economy, is sponsored by RBS Group, DHL, BT Business, BDO, NEST, Westfield Health, PwC, the Occupational Safety and Health Consultants Register, easyJet and Hutchison Ports.

The BCC’s Annual Conference, entitled Building a New Model Economy, is taking place on 14th March 2013. For more information or to register for a free press pass, please visit http://www.bccconference.co.uk/index.php  or contact the press office.

Media contacts:

Lisa Morrison – Press and Communications Manager

020 7654 5812 / 07717682221

Allan Williams – Press and Communications Officer

020 7654 5813 / 07825746812

The British Chambers of Commerce (BCC) is the national voice of local business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce, serving over 100,000 businesses across the UK, which employ over five million people. For more information visit: www.britishchambers.org.uk