PM admits confusion with small business strategy

The prime minister today (November 1st) told small businesses that he was not sure how to persuade banks to lend more.

David Cameron met with small business leaders in Croxley Green Business Park in Hertfordshire, the PA has reported.

He told the group that the coalition was making progress with helping small businesses and reducing their costs.

"We have done some good things on the small company rate of corporation tax, national insurance holidays for new businesses starting up, and Lord Young, who I am a big fan of, is going to start this report for me on all the things that make a difference for small businesses," Mr Cameron said.

The leader added that not all small business sectors would gain from the loosening up of lending criteria, as banks were likely to move lending from one sector to another.

The meeting coincided with the announcement of a series of new measures to help small businesses.

One of them is the continuation of the Enterprise Finance Guarantee, under which the government guarantees 75 per cent of a small business loan.

Published on: November 1, 2010

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