DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/260)
issued by COI News Distribution Service. 11 November 2008
Business Secretary
Peter Mandelson today announced the creation of a new panel to
monitor how banks are lending to small businesses.
The five major high street banks reached an agreement with the
government to provide data on the availability, risk and overall
cost of lending to small and medium sized businesses at the first
meeting of the Small Business Finance Forum.
Detailed talks will now be held with each of the banks to reach
individual agreements on the provision of data to the panel.
The monitoring panel will be made up of senior Department for
Business and Treasury officials and representatives from the Bank
of England. It will monitor and enter into a constructive dialogue
with individual lenders on the availability, risk and overall cost
of SME lending.
The Forum also secured an agreement from the British
Bankers' Association to work with Small Business
organisations to fundamentally revise the Statement of Principles
which set out how banks and businesses work together.
Business Secretary Peter Mandelson said:
"It is critical we understand what finance is available for
small businesses and this monitoring panel will give us greater
insight into the situation at ground level.
"The panel, together with the revised Statement of
Principles, shows a commitment to making progress on resolving the
credit issues faced by small businesses.
"I want this Forum to make a difference. We have opened up a
dialogue between SMEs and banks, and we will continue to work
together to make sure we have the resources in place to see UK plc
through this difficult economic climate."
Banks, businesses and government also discussed the need to
increase awareness of the support and information available to
help companies to manage cashflow.
Consultations with business and finance organisations revealed a
number of companies feel they do not have access to the right
advice they need on financial management.
The Government, in partnership with the Institute of Credit
Management, has produced a series of quick, user-friendly guides
designed to provide this support direct to businesses. Forum
members will now promote the guides over the next few months.
The Forum's Terms of Reference and membership were also
agreed at the meeting.
Notes to Editors:
1) The Small Business Finance Forum will meet regularly
throughout the lifespan of the current economic downturn.
2) The first meeting was held at 3.30 p.m. on Tuesday 11 November
at the BERR Conference Centre.
3) The guides are available online through http://www.creditmanagement.org.uk/berrguides.htm
4) The banks and business organisations are supporting and
promoting the guides: HSBC, Lloyds TSB, Barclays, CBI, FPB, FSB,
IOD, EEF, BCC, BBA, HCC, International Insurance Company, NSCC
National Specialist Contractors Council, ABFA, ACCA, CPA, CSA, CIPS
5) Small Business Finance Forum - Terms of Reference
1. The Small Business Finance Forum (SBFF) will be chaired by
Business Secretary, Peter Mandelson, and attended by Shriti
Vadera, Minister for Competitiveness and Small Business. It will
comprise of 7 UK banks (RBS, Barclays, HBOS, Abbey, Lloyds TSB,
HSBC, Standard Chartered), the Bank of England, the British
Bankers' Association (BBA), key small business representative
bodies (CBI, BCC, IoD, FSB, FPB, SEC, EEF) and individual
entrepreneurs and small businesses. It will also include
representation from the Regional Development Agencies (RDAs),
BERR's Access to Finance Expert Group, the Women's
Enterprise Taskforce, the Ethnic Minority Business Taskforce, the
Department for Business, Enterprise and Regulatory Reform, and HM Treasury.
2. The forum will bring together Government, banks and small
businesses to:
* Have an informed debate on issues pertaining to financial
conditions facing banks and small businesses and an opportunity to
openly raise concerns.
* Identify advice and information for
Government, banks and small business representative bodies to
communicate internally within their organisations and externally
to their members, customers and small businesses.
* Identify
areas of concern, interest and actions in relation to access to
finance, including barriers to SME access to finance.
3. The forum's discussion will be informed by BBA's
emerging data on market conditions for SMEs and any survey data
from members of the forum.
4. Members attend in a voluntary capacity and receive no
remuneration. The lifespan of the Forum will be limited to the
current economic downturn and kept under review until the economy recovers.
Department for Business, Enterprise & Regulatory
Reform
7th Floor, 1 Victoria Street, London SW1H 0ET
Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215
6740 (for those with hearing impairment)
http://www.berr.gov.uk