Forum responds to the ‘funding for lending’ announcement

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"We can only hope that the banks now embrace it as an enabler to boost lending, which in turn will help recharge the UK economy and get it growing out of recession.

"The fact is though that the banks have consistently failed to lend fairly since the crisis began, despite a number of state initiatives – the Griggs' report has only recently highlighted this. Here we have another credit easing scheme, albeit on a much grander scale, to get the banks splashing the cash. 
"You could argue maybe the Chancellor and the BoE hitting the ‘Plan B' panic button should have come much sooner.
"But no matter what lending schemes are put in place, nothing will imbue confidence here more than the eurozone sorting itself out. That remains the chief issue facing the UK economy at the minute, and no number of lending initiatives here can solve that."
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In response to the Chancellor's announcement regarding a new bank credit easing scheme, the Forum's Chief Executive Phil Orford said: "Borrowing costs have been rising while lending has continued to fall, so on the face of it this should be good news for those small businesses struggling to make ends meet".