Member Article

Small business body encouraged by Funding for Lending refocus

The Federation of Small Businesses has welcomed the Bank of England’s decision to refocus its Funding for Lending scheme in favour of businesses, curtailing mortgage help.

Yesterday the Governor of the Bank of England said support for the mortgage market was “no longer necessary” and the scheme would now turn its attention to improving the supply of credit for small businesses in the economy, beginning in January.

John Allan, National Chairman, Federation of Small Businesses, said: “This is a surprising yet refreshing announcement which will make a difference to lending to thousands of our members and millions of small firms. It is something the FSB has raised with the Governor of the Bank of England and he is clearly listening.

“It is encouraging that he has recognised the contribution small firms make to job creation and the real economy has been given priority over the housing market, which is receiving assistance in other areas such as Help to Buy.

“FLS has already helped to reduce the cost of finance for businesses. What we now need is to see a focus on increasing the number of firms getting access to the finance they need to grow.”

This was posted in Bdaily's Members' News section by Tom Keighley .