Chancellor of the Exchequer Alistair Darling is set to meet bank bosses today (Monday July 27th) after voicing concerns that banks are overcharging small businesses for loans, as reported by the BBC.
Despite a record low interest rate figures suggest that the cost of borrowing has gone up for many small businesses, something that the Chancellor has pledged to address at the meeting at the Treasury this afternoon.
The Federation of Small Businesses has backed Darling’s call:
“It is hugely important that Mr Darling keeps tabs on the banks to ensure they are lending money to firms, and at fair rates," said the Federation’s chief spokesman Stephen Alambritis.
"Firms need to be able to reap the benefits of the historically low base rate."
However, ahead of the meeting the British Bankers Association (BBA) has released figures that state total lending to smaller firms has risen £366m in June, from May’s £133m rise.
BBA chief executive Angela Knight said: "As far as the major banks are concerned they are lending, and increasing their lending."