RBS exec reveals credit easing will make little difference - Umunna

Published on Thursday, 15 March 2012 15:49
Posted by Scott Buckler

Chuka Umunna MP, Labour’s Shadow Business Secretary, has challenged Vince Cable on the Government’s failure to boost lending for small and medium sized firms...

..after RBS told a lending summit organised by Labour in the House of Commons yesterday that Ministers’ credit easing scheme will make little difference.

During Business, Innovation and Skills oral questions today Umunna challenged Vince Cable on the delay which has beset the Government’s credit easing policy, which was announced more than five months ago by the Chancellor at the Conservative Party Conference.
 
Umunna has learned through a Parliamentary Question that the Government did not apply for state aid approval for the scheme until 10 February – four months after the scheme was initially announced.
 
Chuka Umunna MP, Labour’s Shadow Business Secretary, said:  
 
“Last October, Ministers said they would urgently implement credit easing and yet they only submitted it to the EU Commission for approval on 10 February – more than 4 months after it had been announced.
 
“At our SME Lending Summit yesterday, RBS told us the scheme would make little difference, the benefits in the main would not be felt by SMEs and the promised reduction in the cost of borrowing would be insignificant.  If this is what the country’s biggest bank is saying, why should we believe the scheme will make a blind bit of difference?”

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