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.
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.