Oral Answers to Questions

Debate between Robert Flello and Andrea Leadsom

Tuesday 29th April 2014 Commons Chamber

[Robert Flello (Stoke-on-Trent South) (Lab)]

4. What recent assessment he has made of the level of bank lending to businesses since May 2010.

[The Economic Secretary to the Treasury (Andrea Leadsom)]

In May 2010, business lending was contracting sharply in the aftermath of the financial crisis. The Government have introduced various measures aimed at improving bank and non-bank lending to businesses, in particular the business bank and the funding for lending scheme. Since 2010, survey evidence has suggested that the credit conditions for businesses have improved significantly and gross lending flows have increased.

[Robert Flello]

The latest funding for lending figures show that, shockingly, net lending to small businesses is down by £2 billion at RBS. Should not a bank that still has huge support from the taxpayer be serving Britain’s small businesses better?

[Andrea Leadsom]

The hon. Gentleman is right to point out that there has been an enormous challenge since the financial crisis. Banks still have a long way to go to work out their balance sheets and to ensure that they are again lending to small businesses. RBS announced recently that it has the single goal of becoming the No. 1 SME bank in the UK. Banks are focused on that issue and it is vital that they are.