On Wednesday 4 June, the Queen will mark the formal start of the parliamentary year and within the Queen’s Speech the monarch will outline some of the main policies and legislation on the Government’s agenda.
One such policy that has been stealing the headlines – and it is something that has reared its head on this blog several times – is the ongoing efforts of George Osborne to address banks’ lending habits to the UK’s small businesses. In short, the major banks have come under widespread criticism from economists, MPs and businesses alike for their reluctance to provide financial support to SMEs.
However, Osborne is planning to introduce landmark legislation that will force high street banks to refer small businesses they have denied credit to alternative lenders – in essence passing potential customers on to competitors. The premise of the new laws is to make the big names think twice before slamming the door in the face of any lowly SME that comes knocking.
The news, which has been circulated over recent days in the build up to the Queen’s Speech, has unsurprisingly been met with opposition from the banks in question. Nevertheless, with SMEs so often singled out for their integral role within Britain’s economic recovery, the passing of legislation to prevent them being starved of the funds they need for growth and expansion – including acquisitions of other businesses – is being welcomed by most as a positive step.
In the current market, it is reported that the largest four high street banks account for 85 per cent of SME lending; they dominate the market as smaller companies do not know where else to turn. As they are still widely acknowledged to be turning many away, the new laws will help the rejected immediately find an alternative lender.
Not only is this move anticipated to benefit SMEs, it is also hoped to boost alternative lending schemes such as crowd finance, peer to peer lending and invoice finance. Alternate finance grew by 91 per cent in the UK last year and, with the help of Osborne, it is thought the sector could be worth £1.6 billion by the end of 2014. 
The company is an automatic and industrial door supplier, installing a variety of systems, including but not limited to, automatic doors, fire resistant shutters, entrance barriers, roller shutters and garage doors.
Well-established company operating for over 23 years. Offers a range of driving positions, which include day runs, local runs, local shunting, nights out and tramping.
The company is a business-to-business wholesaler of cask ales, continental lagers, and craft cider. Since its establishment, the business has cultivated strong relationships with high-profile and local breweries, gaining exclusive access to their pro...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.