Dispute over business lending levels

A dispute has broken out between the UK banking industry and the British Chambers of Commerce with regards to an apparent increase in lending activity in the UK business arena. After many months of political pressure UK banks have reported a significant increase in business lending although the British Chambers of Commerce is unable to confirm the figures which have been suggested. Indeed, the British Chambers of Commerce is suggesting that many businesses are still struggling to arrange short, medium and longer term finance.



Whether there has been an actual increase in lending capacity over the last three months remains to be seen although it does appear that businesses have yet to gain access. It is no secret that UK banks have for some time now, despite significant taxpayer funding, refused to lend to thousands of UK businesses due to the short to medium term issues with the economy. Despite the UK government placing more and more pressure on the UK banking sector, a significant increase in business lending has not yet materialised.



It is also no secret that the UK economy will not recover without additional finance becoming available for both businesses and consumers up and down the country. How long this will take remains to be seen.