Oral Answers to Questions

Jonathan Ashworth Excerpts

Wednesday 4th July 2012 Commons Chamber

[The Prime Minister]

My hon. Friend is entirely right to raise a constituency case such as this, where so many people have lost their lives and where there is such a threat to safety. I will certainly look at what he says. As he says, it is a matter for the county council, but if I can help him to put his case, I will be pleased to do so.

[Jonathan Ashworth (Leicester South) (Lab)]

Q9. Leicester is bearing the brunt of the Prime Minister’s double-dip recession, with the sad news today that yet another business is going under, resulting in the loss of local jobs. In that context, was he as disappointed as I was at the figures released last month showing that lending to small businesses was down by £1.7 billion? Is it not clear that the Chancellor’s credit easing policies are not working?

[The Prime Minister]

The credit easing policy—the national loan guarantee scheme—is going to make available £20 billion of extra loans; some of that money is already available. The Merlin scheme saw lending to small businesses go up in 2011. It is difficult when the banks are nervous about the economic situation, but the Treasury and the Bank of England are doing all that they can, including through the Merlin agreement, to get money out of the banks and into hard-pressed businesses.