Credit-easing welcome but more needed

date: 20 March 2012

embargo: For immediate release

Commenting on the announcement today (Tuesday) that the government is to launch a credit-easing scheme for small businesses, TUC General Secretary Brendan Barber said:

'Any move to encourage the banks to start lending again is to be welcomed. Small firms are crying out for cash so they can invest, begin to expand and take on more staff.

'But this scheme on its own is not enough to get the UK economy back on its feet. With corporate Britain sitting on a £700bn cash pile, ministers must be more ambitious at finding ways of boosting business confidence and encouraging firms to unlock their profits to invest.

'The main problem of course is a stagnating economy, as businesses won't feel confident enough to start spending again until our wider economic prospects improve.

'But increasing capital allowances tomorrow would be one way to make business investment more likely. And another would be to grant the fledgling Green Investment Bank the ability to borrow so it too can help get UK PLC growing once more.'

NOTES TO EDITORS:

- All TUC press releases can be found at www.tuc.org.uk

Contacts:

Media enquiries:
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