Oral Answers to Questions

Meg Hillier Excerpts

Tuesday 29th April 2014 Commons Chamber

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Since funding for lending was introduced, funding for small businesses has actually gone down. Businesses in my constituency tell me that one of the biggest problems is the withdrawal of overdraft facilities by many banks. What is the Minister doing to ensure that such short-term cover is available.

[Andrea Leadsom]

Only recently, the national policy chairman of the Federation of Small Businesses said that funding for lending is helping to bring down the cost of credit for small businesses. It is vital that banks focus on rebuilding business lending, and many of them are doing so. As the economy recovers, we expect that to pick up. Indeed, gross lending is 12% higher than in 2012-13.