Will coalition's credit easing plans boost small businesses?

Date: 4th October 2011

The coalition has taken a step in the right direction by outlining plans to improve access to credit for small businesses.

That is according to the Confederation of British Industry (CBI) after chancellor George Osborne announced moves to ease the pressure on banks and open up alternative routes to finance.

Speaking at the Conservative Party Conference in Manchester, Mr Osborne outlined plans to stimulate job growth and help smaller firms flourish.

The plans have bee welcomed by the CBI, which said that there is only so much that banks can offer in the current economic environment.

John Cridland, the organisation's director-general, said: "Small firms need credit and, with the continuing eurozone crisis, banks can only do so much, so the proposal for credit easing to get money directly into the hands of smaller businesses could be just what the economy needs.

"But these are uncharted waters and these proposals need to be fully worked up as quickly as possible."

Posted by Jacob Williams