< Back to previous page

'Govt shows contempt for small businesses with Sugar appointment'

Published on 6 Apr 2010 under category: legal

Banks should be forced to make good on their promises to increase lending to small businesses during the tough economic climate, according to a senior Liberal Democrats figure.

Shadow chancellor Vince Cable attacked the government's appointment of Lord Sugar as the head of a new task-force created to monitor lending to small firms.

He said today (April 6th): "With this appointment, the government is showing the same contempt for small business people as Lord Sugar shows them when they complain about the banks.

"They must take a firm hand with the banks which we own to ensure that they are lending to British businesses and supporting our economy.

"Unless businesses can get the credit they need to create jobs and growth, there will be no recovery."

The Small Business Credit Adjudicator was launched last week in order to address small firms' claims that they are in some instances being unfairly turned down for credit.

It will work with Business Link's Financial Intermediary Service and create dialogue between companies and the banks when there is cause for concern about lending decisions.

On the choice of figures on the panel, the business secretary Peter Mandelson said: "Lord Sugar, Mike Fairey and John Wright have decades of experience in banking, business and enterprise. They understand the critical importance of new finance and credit flow to the growth of small, innovative companies."

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.