FSB: Quantitative easing must benefit small firms

Date: 7th October 2011

Small business owners around the UK could be among those encouraged by the recent comments of one industry expert.

John Walker, national chairman of the Federation of Small Businesses (FSB), has said that new measures designed by the Bank of England to boost the economy must benefit the country's smaller firms.

It comes after the Bank pumped £75 billion into the economy through its latest round of quantitative easing.

Governor Mervyn King said that without the funds, the UK faces the worst recession in 80 years "if not ever".

Mr Walker welcomed the news but claimed small businesses should be at the forefront of any efforts to boost the economy.

"It is important that in an attempt to boost short-term demand that small businesses can directly benefit from this cash injection and that the banks use it to decrease the cost of credit and to increase the availability of lending," he said.

"While the introduction of credit easing aims to give small businesses access to credit, we also need to see a commitment to keep interest rates low until the economy has seen a prolonged period of growth."