In a meeting at the Treasury today, the Chancellor will ask lenders to reduce their rates in order to boost lending figures.
Liberal Democrat Shadow Chancellor Vince Cable says: “It is amazing that the Chancellor of the Exchequer has only just woken up to the fact that this is a problem. We have been warning about the lending crisis, including in Government-owned banks, for months.
“The problem isn’t just about the cost of borrowing, but the difficulties which many companies who are solvent, with a good credit history, have in obtaining bank credit without unreasonable demands for personal security and charges.
“It’s time the Government stopped being a passive investor in the nationalised and semi-nationalised banks and ensured that they maintain lending to good British companies for the wider interest of the national economy.”