RBS, HBOS, Lloyds TSB told to help small Businesses

The new Business Secretary Lord Mandelson along with Alistair Darling, the Chancellor, will meet with British Bank chiefs today in a bid to help small businesses through a recession. The banks thought to be attending the meeting are Royal Bank of Scotland, HBOS who own Halifax and bank of Scotland and Lloyds TSB the meeting is also thought to include cheifs from Barclays and HSBC who didn’t take the government cash injection and who are under no obligation.

It’s expected that the banks will be urged by the government officials to increase lending to small businesses. This is just another sign that the £350 million package to help improve training and provide swifter access to government funds hasn’t had any immediate effect.

It’s likely that no immediate announcement will be made as a result of the meeting, however it is rumoured that they may discuss a similar measure that banks implemented back in 2001 with the foot and mouth crisis.

Small Businesses have become the central fighting ground for the government’s economic recovery plans with over 4.5 million small businesses employing over 14 million people it’s something the government has to take very seriously when the country is on the brink of recession.

HBOS, who also own Bank of Scotland and Halifax, Royal Bank of Scotland and Lloyds TSB, have all continued to lend at 2007 levels since the governments £37 billion rescue plan came in to force as part of its condition.

Source: timesonline