View more on these topics

F&C backs credit-easing for small firms

F&C director of global strategy Ted Scott has backed Chancellor George Osborne’s plans for credit easing for smaller and medium-sized companies.

Addressing the Conservative conference in Manchester on Monday, Osborne announced a new programme of credit easing to support business lending.

Credit-easing refers to buying or guaranteeing private sector assets such as corporate bonds or SME loans in order to inject money directly into a particular part of the corporate sector and get credit flowing.

Treasury officials say the process is a more targeted version of quantitative easing, with the Government seeking to find people buying corporate bonds or SME loans and encouraging them to buy more or buying them directly and creating demand.

The aim of the policy is to free up credit in specific sectors of the market. Policymakers believe this will help avoid future cre-dit crunches.

Osborne will provide further details of how credit-easing will work in his autumn statement on November 29.

Scott says: “Businesses, particularly smaller businesses, are finding it difficult to obtain cre-dit from the banks. Banks are so fearful of corporate risk that they are loath to extend credit to smaller businesses.

“The liquidity of smaller companies makes it difficult for them as well. It is hard to sell shares and if you get someone aggressively selling shares, that could have quite a big impact on the share price.

“However, it will not have a huge impact on the corporate bond market overall as it is only for smaller companies.”


The making of a resident

Those working abroad will need to get to grips with the new rules on residency as there will be tax implications

S&P affirms UK rating but warns on growth

Standard & Poor’s has affirmed the UK’s top credit rating but warned that the government’s recovery plan is “optimistic”. The agency maintained the country’s AAA long-term and A-1+ short-term sovereign credit ratings while keeping the outlook at stable. A statement by S&P says the rating was affirmed in light of the UK’s “wealthy and diversified […]


Andrew Tyrie attacks Government growth strategy

Treasury select committee chairman Andrew Tyrie has attacked the Government’s growth strategy, labelling it incoherent and inconsistent. In a report for the Centre for Policy Studies thinktank, It’s the economy, published on the eve of the Conservative Party conference in Manchester, Conservative MP for Chichester Tyrie backed the Government’s deficit reduction plan but slammed projects […]


Rosengren: I may return to ‘resilient’ advice sector

Retiring Lighthouse joint chief executive Allan Rosengren says financial advisers have a promising future and adds there is every prospect he will return to the sector. Speaking to Money Marketing this week, Rosengren (pictured) says he is stepping down from his role to focus on his private equity, investment and property venture Capitecs, where he […]

Health - thumbnail

Fit for Work: guidance for employers published

On Friday, the Department for Work and Pensions published its guidance for employers on using the new Fit for Work (FfW) service to help ill employees return to the workplace. It also includes more details on the tax exemption for medical interventions that commenced on 1 January 2015.


News and expert analysis straight to your inbox

Sign up


    Leave a comment