Cable demands Funding for Lending scheme rethink

Vince Cable has called for the Bank of England to conduct a review of its flagship £80bn lending scheme over fears that it is failing to improve the flow of funding to credit-starved small companies.

The Business Secretary called for “more open-minded thinking” at the central bank and for urgent discussions over how the Funding for Lending Scheme (FLS) can be changed.

Cable said he has written to Paul Tucker, the deputy governor of the Bank of England, asking for the FLS to be “adapted to deal with the needs of SMEs”.

The emergency scheme was launched last July in an attempt to reduce lending costs for households and businesses, and in turn, increase the flow of credit.

Continued...

» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.

Comments

Abused tax payers money, used

Alice White | | Permalink

Abused tax payers money, used to fund sub prime mortgage rates to get FTBs into massive debts to save builders shift stock, while B2L continues to take away supply supported and loved by Govt tax benefits low income tax and generous CGTax breaks with numerous tax loop holes. What have you done about creating business in the UK - I know your 'call' talks about lending to SMEs - great ! you must have been there when the whole UK loans online thing was set up - so what went wrong Vince ?  why don't you just fix it - you are the one that's screwing it up.