New warning on economy
BRITAIN’S fragile economic recovery is at risk following a slump in lending to small businesses as UK firms’ confidence hits a 26-month low.
Today’s business trends report from accountants BDO shows indices measuring turnover expectations and business confidence two quarters ahead were at their lowest in August since June 2009.
Meanwhile, independent finance provider Syscap called for the Government’s flagship small business lending scheme – the Enterprise Finance Guarantee – to be expanded after the value of loans plunged 42 per cent over the past year to £433million.
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Our predictions should serve as a wake-up call to policymakers that action must be taken
It highlighted the exclusion from the scheme of lease financing – a crucial source of funding for smaller firms.
BDO partner Peter Hemington warned: “Our predictions should serve as a wake-up call to policymakers that action must be taken to avoid economic contraction.”