Small and medium sized businesses (SMEs) could be set to benefit from better funding as government scrutinises the lending process.
The Parliamentary Treasury Committee is investigating how easy it is for SMEs to borrow money, the treatment they receive from the banks and how to open the sector up to more competition.
Led by Chairman Andrew Tyrie MP, it has begun by gathering evidence from Priyan Patel of the Federation of Small Businesses, Matthew Fell from the Confederation of British Industry and Professor Russel Griggs OBE from the Banking Taskforce Appeals Process.
Tyrie said, “SMEs report that they are struggling to secure adequate access to finance, from banks and elsewhere. It is vital to a sustainable economic recovery in the UK that this market be restored to working order.
“Regulatory and other impediments to competition need to be removed, enabling SMEs better to take advantage of new sources of finance. More competition can also drive up standards.”
He also adds that SMEs have been treated badly by banks and mis-selling of interest-rate swaps has caused some businesses to suffer significant losses.
The Treasury Committee is welcoming any written submissions on the issues raised in its scope, and will outline a time line for the inquiry in due course.
