Banks 'unlikely' to meet business lending targets

Date: 21st December 2009

Small businesses across the UK are continuing to struggle to obtain finance, in spite of the targets set by the government as part of its bail-out packages for some of the country's biggest banks.

Last week, smaller firms were given a boost by the news that some £150 million worth of affordable credit is to be made available through a new scheme backed by the European Investment Bank.

However, it has been reported that both the Royal Bank of Scotland and the Lloyds Banking Group are set to miss their targets for lending to businesses, despite the fact that these formed a key part of the part of the conditions laid out as part of the recent taxpayer-led bailouts.

According to a new report in the Telegraph, Lloyds is unlikely to reach its target of lending an extra £11 billion to businesses, while RBS is similarly on track to fall short of its £16 billion target, spelling bad news for small businesses looking for affordable credit with which they can expand their operations.

At the same time, HM Revenue and Customs has revealed that papers on international trade VAT and UK trade relief were among its most-frequently used guides over the course of 2009.