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Builders support Osborne’s bank demands

The Federation of Master Builders is supporting calls from the Chancellor of the Exchequer George Osborne for the banks to increase support for small businesses.
With the major banks all reporting a move back into profitability, Brian Berry, director of external affairs at the FMB said: “The Government is right to be warning the banks that businesses must be allowed to borrow money. Without this funding the banks are delaying the economic recovery and putting more jobs at risk. Small businesses need access to credit on reasonable terms and unless the banks are prepared to act responsibly the Government must take direct action to force them.”

He continued: “Small construction companies are still struggling to survive in the current economic climate in which one late payment from a customer may cause a cash flow crisis that can send a firm to the wall if the bank withdraws its support.

“Many firms are unable to secure loans or even retain their existing overdrafts, and as a result many are going out of business which is pushing up unemployment in the building sector. It is totally unacceptable for banks to be charging higher rates to small businesses and jeopardizing their futures, in order to fund the return to bonus bonanzas for banks.

“Given the billions of pounds that have been pumped into the banking sector, and the billions of pounds in profits they are now making, the very least we expect from the banks is help for the small businesses which are essential to the UK’s economic recovery from the recession. Taxpayers helped the banks when they were in trouble now it is now time for them to return the favour to help the small business community. ”

About Fiona Russell-Horne

Fiona Russell-Horne
Group Managing Editor across the BMJ portfolio.

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