Chuka Umunna MP, Labour’s Shadow Business Minister, commenting on today's Bank of England statistics which show lending to businesses contracting, said:
"We constantly engage with businesses across the country and have found the vast majority of business owners feel the Tory-led Government is not doing enough to get banks lending.
"The Tory-led Government failed to ensure the Project Merlin agreement, which was meant to get banks lending to businesses, had any teeth and businesses are now paying the price. By his own admission Vince Cable is now having to revisit the terms of the Merlin agreement with the banks, because it is unclear how bank CEO pay will be linked to SME lending targets, and adequate monitoring of those targets is lacking too. Businesses need access to finance to help them grow and create jobs, in turn helping to get the deficit down."