Press Release

FSB: Small businesses must be recognised in bank rescue package

8 October 2008

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.”