STUNELL TAKES BANKS TO TASK OVER SMALL BUSINESS HELP

3.01.00pm GMT Tue 11th Nov 2008

Local MP Andrew Stunell has today written to the chief executives and local branch managers of all the banks within the Stockport Area urging them to ensure that money continues to flow to local businesses, and pledging to work with them to help weather the crisis.

Andrew has also offered his backing for the Liberal Democrats' proposals to help small business survive the looming recession, launched by Lib Dem leader Nick Clegg, and Shadow Chancellor Vince Cable last week. These proposals include:

• a substantial cut in interest rates to lower the cost of loans and investment (Now confirmed by the bank of England);

• immediately overhauling the Small Firms Loan Guarantee Scheme to improve government support for business loans;

• banks which receive government financial assistance adopting a new code of conduct on rearranging business credit and overdrafts;

• developing with energy companies an assistance package for small businesses struggling with high energy bills

Commenting, Andrew Said:

"Small businesses are the lifeblood of our economy, and it is vital that we give them a fighting chance to get through the recession. There are already small businesses in Stockport suffering from the downturn - profits are being squeezed and jobs are at risk.

"Banks must ensure that money doesn't simply flow into their coffers, but into the wider economy. The large cut in interest rates that I've been calling for will be a big boost to many local businesses, but it is crucial that banks pass on this cut to their customers. It could mean the difference between staying open or closing down.

"The government and the people of this country stood behind the banks, it's crucial now that the banks stand behind their customers.

ENDS