View more on these topics

Govt to back £20bn of SME lending by banks

The Government has launched a scheme to guarantee up to £20bn of bank lending to small and medium sized businesses in exchange for firms getting a 1 per cent discount on those loans.

Announced in the Autumn Statement, The National Loan Guarantee Scheme does not guarantee individual loans so banks retain the credit risk, though the Government will be liable if the banks involved fail.

The move is designed to make it easier and cheaper for banks to obtain credit on the wholesale markets. Banks will have to pass on 1 per cent of the savings resulting from the state backing to firms borrowing money. Any other savings made by the bank will go back to the Government to meet European state aid rules, with the minimum return set at 1 per cent.

So far Barclays, Santander, Lloyds, Royal Banks of Scotland and Aldermore have signed up to the scheme.

Chancellor George Osborne says:“The Government promised to help small businesses get access to lower interest rates. Today, we deliver on that promise with a nationwide scheme. It’s only because we have earned credibility with our deficit reduction plan that we have low interest rates, and it’s only because of this scheme that we can pass the benefits of those low rates onto businesses.”

In a statement, the British Bankers’ Association says the guarantees will make lending to small firms cheaper: “Banks know it is their job to help viable firms be successful and also recognise the part they have to play in supporting the UK economy. With support through schemes like the NLGS for even lower cost borrowing, now is a very good time for UK businesses to speak to a bank about their financing needs.”



NatWest temporarily suspends interest-only lending

NatWest Intermediary Solutions is to temporarily stop lending on an interest-only basis. From March 23, NIS will only offer residential mortgages on a capital repayment basis only. The move does not affect the direct brands within the Royal Bank of Scotland Group. The move is temporary and the lender will reintroduce an interest-only option on […]

Founder Ronaldson leaving Intrinsic

Intrinsic deputy chairman and group marketing director Kevin Ronaldson is leaving the firm after more than five years. Ronaldson was one of six founders who set up Intrinsic in 2006. He will leave at the end of April after the firm’s national members’ meeting. Intrinsic says it has no plans to replace Ronaldson. Money Marketing […]

Budget 12: Child benefit threshold increased to £50,000

Chancellor George Osborne has revealed child benefit payments will start to be reduced for families where there is a person earning over £50,000. Giving his Budget statement today, Osborne said families where there is a wage earner with a salary of £50,000 are to lose 1 per cent of the benefit for every £100 that […]

Fears raised over strategic bond allocations

TM Darwin founder David Jane has warned multi-asset funds that invest heavily in strategic bonds may not offer investors sufficient diversification. Jane, who runs the £11m multi-asset fund, says strategic bond managers are investing in equity because it is cheaper than high yield. He says: “A lot of multi-asset funds are constructed of strategic bond […]

Tax year-end planning with the family

From the Technical team at Prudential Let’s face it, many aspects of financial planning involve a lot of technical detail. At our face-to-face events, we’ve had great success bringing these technical topics to life through the use of practical case studies. Meet the family Prudential’s Planning Matters hub brings together a fictional family and explores […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm