Lib Dem scheme to improve small business borrowing in the recession praised

July 28, 2009 10:30 AM

Greg Stone, Lib Dem Parliamentary Spokesman for Newcastle East, has hailed efforts made by the Lib Dem run Newcastle City Council to introduce a small business loans scheme to help local businesses struggling to raise capital to safeguard or create jobs.

Despite massive Government financial intervention in the banking sector, at a cost of billions of pounds, banks are still refusing to lend to business at pre-recession rates. The shortfall in access to finance is seriously affecting business stability as investment has dried up, with a knock on effect of restricting business growth and recovery from the recession.

Greg Stone said "I am delighted that the Lib Dem council administration are taking positive steps and leading the way to create a new fund for small business borrowing in the city, using the council's financial reserves which would otherwise be invested in big banks. This shows real leadership on this issue by the Lib Dems in Newcastle, while Labour ministers wring their hands and do nothing to bring their influence over big banks to bear. Whilst Labour are all talk and no action, the Lib Dems are investing in local business and helping to bring the city out of recession"