The Prime Minister drones on about the support his Government is giving to small business yet the banks are still charging 8% and 9% above base, are shortening the agreed periods for overdraft, are increasing the charge for negotiating those overdrafts and forcing many small business owners to put their houses on the line by way of personal guarantee.
The FSB reports that a third of their members are considering packing up as a result.
Words tumble out of Gordon Brown’s mouth but action fails to follow.
Small businesses need help now if they are to survive, and the banks need to provide that cover. Government should therefore make sure the banks have the relevant guarantees to lend money to viable businesses to help them to overcome their problems.
But the Prime Minister can do more.
I directly challenged him this week to scrap the 1% increase in corporation tax due to come into effect next April, and to announce that action now. He failed to do so.
Let us hope the Chancellor rectifies that omission in the Pre Budget Report next week.