Small businesses ‘must be at forefront’ of bank rescue package

The needs of small enterprises should be recognised in the Government’s newly-devised banking rescue plan, a leading business champion has claimed.

The Federation of Small Businesses (FSB) has called on ministers to put small business at the forefront of its £50bn bank restructuring programme, which was unveiled earlier this month.

According to the lobby group, the UK’s top eight banks should make reassurances to extend loans to small firms on a normal financial basis.

Many high street lenders have recently cut credit facilities and imposed higher overdraft charges in an attempt to rein in their finances during the Credit Crunch. This, coupled with higher utility charges, has put immense pressure on many of Britain’s 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.

‘It is crucial in these tough times that small businesses have access to fair overdraft and loan rates.’