Chuka Umunna MP, Labour’s Shadow Minister for Small Business and Enterprise, commenting on today’s Small and Medium Enterprises Finance Monitor survey, which is the largest survey of its kind undertaken, said:
“The Tory-led Government’s policies, putting up VAT and cutting too far and too fast, are choking off growth and holding back businesses. Today’s SME Finance Monitor confirms that the lack of confidence in the economy is the key factor putting businesses off seeking additional finance.
“And for small business trying to seek finance, they are not getting what they need with over 40 per cent of SMEs applying for a loan being turned down in the first instance. The banks urgently need to ensure that their operations are better tailored to the needs of SMEs which are vital for growing the economy. Stronger growth, with more people in work and paying taxes is the best way to get the deficit down.”