Banks £46bn squeeze on business in Labour’s last year – Oakeshott

Commenting on the Bank of England’s report ‘Trends Lending’, which finds that banks withdrew £46bn in lending to UK businesses over the last year, Liberal Democrat Treasury Spokesperson, Lord (Matthew) Oakeshott said:

“The banks inflicted a savage £46bn squeeze on British business in Labour’s last year in office.

“Stopping this savage bank squeeze on business and getting them lending again to boost growth and jobs is a top priority for the Coalition after Labour’s grisly economic legacy.”

ENDS

Notes to Editors:

1. New figures from the Bank of England’s ‘Trends in Lending’ report show banks withdrew a further £2.3 billion from business lending in May.
2. This is the third month in a row and the tenth month in the last twelve of negative net bank lending to business.
3. Over the past year, the banks took back £45.9 billion more in loans than they lent to business.
4. Please find attached a copy of the relevant section (in bold). The full report can be read at: http://www.bankofengland.co.uk/publications/other/monetary/TrendsJuly10.pdf and the attached table can be found at: http://www.bankofengland.co.uk/publications/other/monetary/trendsinlending2010.htm