Chris Leslie MP, Labour’s shadow Treasury minister, responding to today’s announcement on the Funding for Lending scheme, said:
“Despite scheme after scheme – from the failed Project Merlin deal with the banks to credit easing and now Funding for Lending – net lending to businesses has fallen month by month under this government.
“Labour called for reforms to this scheme last year, so these belated changes are welcome. But with net lending to businesses down by £4.8 billion in the last three months alone they do not go far enough.
“What we need is a proper British Investment Bank to get lending going to small and medium sized businesses, wider action to kickstart our flatlining economy, including building thousands of affordable homes, and a lower 10p starting rate of tax to ease the squeeze on people on middle and low incomes.”<div>