ACCESS TO FINANCE FOR SMALL BUSINESSES

That this House expresses concern at recent findings from the Federation of Small Businesses that show around 84 per cent. of small businesses are not approaching the banks for credit either because they have already been refused finance or because the cost of finance is too prohibitive; notes that firms that do use the banks as their main source of finance are being penalised by high interest rates at a time when the base rate is at an all time low; and calls on the Government to take steps to change the structure of the banking industry to create competition within the sector and a more stable environment for lending.