Press Room
£50 Billion Liquity Comment - business lending must also
be a priority
If you are writing about the Chancellor's plan to inject
£50 billion into the banking sector to encourage lending, please
consider the following comment from Alysoun Stewart, Head of
Entrepreneurial Advisory, Grant Thornton:
"While the Government's £50 billion banking sector liquidity
injection will be a welcome relief for homeowners and first time
buyers throughout the UK, the Treasury should equally be
encouraging banks to free up funds for business loans as a
condition of the funding."
"As in the housing sector, businesses are being negatively
impacted by much tighter lending controls, and there is less
appetite for expansion and growth as a result. To keep the economy
on track, the government ignores business lending at its
peril."
"Entrepreneurship is often funded through homeownership, so the
two issues are also directly linked. Businesses will therefore
welcome greater liquidity in the mortgage market, but business
lending must also be part of the bigger picture, or the UK may end
up propping up house prices at the expense of business growth."