As Chair of the All Party Parliamentary Group on Fair Business Banking I am delighted to report the Government’s successful record in supporting small businesses and creating new jobs. Over the last six years there have been a significant increase in Government-backed lending with 89 loans to businesses in Thirsk and Malton worth more than £800,000, including some enterprises that might have otherwise found it difficult to access finance from commercial lenders.
The government owned British Business Bank has also helped to improve access to finance for small businesses by offering a wider range of options for SMEs. These include identifying and helping reduce regional imbalances across the UK and enabling SMEs to access the type of finance best suited for their needs. The online Finance Hub also supports entrepreneurs identify and access the most appropriate type of finance.
I can also report that the overall level of late payment debt owed to SMEs has dropped substantially to £14.2 billion last year from more than £30 billion five years ago, with additional measures being put in place to reduce it still further by introducing a new tough and transparent compliance regime and ensuring that all companies have responsible payment practices.
Our small and medium-sized businesses are the backbone of our economy and account for 60% of employment in the private sector. It is absolutely vital that they have access to the finance they need to grow and are given recognition and practical support to ensure they reach their potential.
For more information about the Business Bank www.british-business-bank.co.uk/finance-hub