John Swinney appeals to banks on behalf of small businesses
Scottish finance minister John Swinney has admitted writing to the Royal Bank of Scotland, HBOS, Lloyds TSB and Clydesdale bank on behalf of the small business committee of Scotland. Swinney has urged the banks in question to make use of available lending through the European Investment Bank which has been put aside specifically for smaller companies in Europe.
Small to medium companies account for over 90% of the Scottish economy which is a reflection of the growing anxiety within Scottish halls of power. The Scottish government has confirmed a number of complaints from small to medium sized businesses who are experiencing severe financial difficulties and are unable to raise extra finance. It is hoped that the now open line of communication with the banks listed above should see a softening of this overcautious strategy from the UK financial sector.
While the reasons for Swinney's involvement in the issue are purely related to the Scottish economy there is no doubt that the situation has been replicated elsewhere in the UK. Unless many of these small to medium-sized businesses obtain some form of financial assistance in the short term the consequences for Scotland and the UK as a whole are potentially serious.
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