Chancellor George Osborne has admitted that many companies are losing out thanks to the lack of affordable borrowing available to them, and announced a new ‘credit easing’ scheme to help provide more loans to small businesses.
Osborne announced the plans during his speech at this week’s Conservative Party Conference in Manchester, stating that:
“The government itself can do more to get credit flowing and encourage investment. Everyone knows Britain’s small firms are struggling to get credit, so as part of my determination to get the economy moving I have set the treasury to work on ways to inject money more directly into the parts of the economy that need it”.
The chancellor, along with the Treasury and the Bank of England are still considering options, however, the scheme is likely to be based on a previous idea put forward by the party where the state will underwrite new business loans.
The Chancellors latest plans are unlikely to appease many critics, who were seeking more ambitious action to increase growth, however, Mr Osborne reiterated his belief that current plans are the only way to go in an interview with sky news: “The biggest help I can provide is to sort out the British economy, sort out the mess that this government inherited and above all keep interest rates down”.
Mr. Osborne’s assertions have been strengthened, for the time being at least, by credit ratings agency Standard and Poors decision to reaffirm the UK’s AAA credit rating..