Osborne flip flops on business lending

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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.

During the scheme’s 18-month “drawdown period” until the end of January 2014,  the Bank of England will offer to lend banks four-year UK Treasury Bills. The banks will be able to swap the loans back when they mature to minimise their risks, and the price paid will be based on the bank’s net lending between 30 June 2012 and t...

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About John Stokdyk

John Stokdyk is the global editor of AccountingWEB UK and AccountingWEB.com.


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29th Aug 2012 21:50

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.

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