Hammond says Labour cannot escape blame for bank lending fiasco

Philip Hammond has called on the Government to “stop talking and start acting” in order to get banks lending to businesses again.

The Chancellor, Alistair Darling, met with bank bosses today about the issue – but Philip warned that “more meetings will not get credit flowing again”.

He said, “After all the fuss and fanfare around today’s meeting, the outcome will not make one jot of difference to struggling businesses up and down the country.”

And he stressed that, while the banks must take some of the blame, the Government “cannot escape responsibility either”:

“They have been talking about this problem – and claimed on more than one occasion they had a solution – for months now while jobs and businesses continue to be lost. Alistair Darling has been asleep on the job and the public will take his synthetic anger with a pinch of salt.”

Philip, Shadow Chief Secretary to the Treasury, called on the Government to adopt our proposal of a national loan guarantee scheme to reduce risk and take away the excuse for not lending more.

(BERR) Real help with lending and advice for local businesses

Financial Secretary to the Treasury, Stephen Timms MP today urged local companies to take advantage of Government-backed support on offer to help them through the economic downturn, at the first regional lending roadshow in London today.

Mr Timms said Government action was increasing lending available from the banks and easing cash flow pressures by allowing businesses to delay payment of taxes and business rates.

The London roadshow brings together Government Ministers, representatives from the banks, small business owners and experts from the Business Link advice service.

Businesses will be able to raise lending issues affecting their companies and will be given information and advice on sources of additional lending and support from the banks and Business Link advisers.

Financial Secretary, Stephen Timms MP said:

"Today's meeting is the first in a series of lending road shows across England aimed at bringing banks and businesses together to improve understanding of the pressures on business, and the support banks are able to provide.

"As MP for a London constituency I know that many local businesses are feeling the pressure, as cash flow has become tighter and access to credit has been squeezed.

"The government understands the vital contribution London's businesses make to the region and to the UK economy as a whole. That's why we have taken decisive action to get credit flowing again and why it's crucial that businesses understand what support is available to them from banks and the government, and how they can access it."

Today's meeting is the first in a series of lending road shows across England including events in Salford on 14 April and Milton Keynes on April 21.