ACS

The three banks, Lloyds TSB, HBOS and Royal Bank of Scotland, that have received money from the Government have been told by the Chancellor to adopt a strong focus on making lending available to small businesses. The Chancellor, Alistair Darling, has stated that, “The availability of lending to homeowners and small businesses will be maintained to at least 2007 levels.”

ACS Chief Executive James Lowman said: “Small retail businesses need to be able to borrow to invest in their stores. This announcement is welcome because it provides some certainty and a sound basis for that borrowing.

“Convenience stores have over the past year seen increased food and fuel prices and bank charges. This has been difficult for businesses that already pay heavy taxes as well as having to deal with annual inflation-busting increases in staffing costs.

“ACS calls for the Government to clarify the ‘2007 level of funding’ that should be made available to small businesses – does this mean the gross lending, the net lending, or the total loan book at the end of the year? This is a statement open to interpretation at a time when small shops cannot continue to cope with uncertainty.”