Osborne flip flops on business lending

While launching a new £80bn Funding for Lending scheme this week, the chancellor announced that it would replace a £20bn credit easing scheme launched in March.

The Funding for Lending scheme announced on Wednesday (1 August) will provide up to £80bn in extra finance for banks and building societies at favourable rates to support new loans to small businesses and mortgages for home-buyers.

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Comments

The problem with the banks is

Alice White | | Permalink

The problem with the banks is not money, it is bad management. Yet again, the government thinks that money magic will cure problems when, in fact, this entire crisis was caused by a productivity crisis, was caused by a management crisis, was caused by politicians abjectly failing to ensure a controlled and highly focused management class. Companies who have a sound business will currently have access to borrowing currently, it will be only the risky business proposals that struggle to gain funding, which is where this money will end up. Once a gain tax payers will carry the can. Osborne would make a real difference by cutting regulations, taxes and lowering the minimum wage day advance and making business investment attractive because the business is a profitable viable business.