Warning over business funding gap
- Published on Friday, 16 March 2012 09:38
- Written by Scott Buckler
A government-appointed committee says access to finance for businesses needs to be improved or there could be a funding gap up to £190bn in five years
The report comes ahead of next week's Budget, when there could be measures taken to boost funding of small firms.
The group led by Legal & General boss Tim Breedon is calling for a single agency to run all the government's programmes supporting small businesses.
It also wants a body to bundle small business loans and sell them.
"There is compelling evidence that access to finance is expected to become more acute as business confidence and growth returns, whilst continuing bank deleveraging is likely to leave a significant funding shortfall," said Tim Breedon.
The report predicts a funding gap of between £84bn and £191bn over the next five years.
It calls for the establishment of a Business Finance Advice network, which will be made up of the big accountancy firms.
Source: BBC News