FSB: Small businesses must be recognised in bank rescue package

The Federation of Small Businesses (FSB) today called on the Government to put small businesses at the forefront of the bank restructuring programme.

With millions of small businesses strapped for cash and seeing an increase in costs and a decrease in trade it is vitally important that the relationship between banks and small businesses is put on a sounder footing.

At a time when bank charges are rising for small businesses this is an opportunity to include specific policy measures for business owners in the rescue package.

Today’s announcement by the Government in making available £50 billion to the UK’s top eight banks should be coupled with reassurances from these very same banks that they will extend loans to small business on a normal financial basis.

Commenting on behalf of Britain’s 4.7 million small businesses, FSB National Chairman, John Wright, said:

“This is an ideal opportunity now that the government has a big stake in the banks to enter into a constructive dialogue with them about their commercial practices and their charges regarding small businesses. Almost half of our members have seen an increase in the cost of finance over the last year. It is crucial in these tough times that small businesses have access to fair overdraft and loan rates. Today’s announcement should be coupled with assurances that more money will be made available to small businesses to help sustain them and get them through the next year.”

ENDS

Notes to Editors

1. The FSB is Britain’s leading business organisation with over 215,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

Contacts:

Stephen Alambritis: 020 7592 8112 / 07788 422155
Sophie Kummer: 020 7592 8128/07917628998
Prue Watson 020 7592 8121 / 07825 125695
Marc Shoffman 020 7592 8113 / 07595 067068

For regional FSB contacts please go to www.fsb.org.uk/regions