Feeds

CBI warns of harsh winter for small biz

Prising cash out of the banks

Providing a secure and efficient Helpdesk

Business group the Confederation of British Industry (CBI) called on banks to free up lending to small and medium enterprises this winter, warning that many firms will be looking for funding.

John Cridland, deputy director-general of the CBI, said businesses would be forced to cut jobs and investment if banks did not free up access to credit.

He told the Commons' Business and Enterprise Committee that the relationship between banks and business had suffered because of the credit crunch and that banks remained suspicious of lending to businesses. The government promised to encourage banks to open access to credit to business as part of its bail out package but never made clear how this would happen.

The CBI is calling for a one per cent cut in interest rates today.

Cridland said: "We have talked to businesses of all shapes and sizes across the UK, and the need for a further rate cut is clear. The recession into 2009 will be both longer and deeper than expected, and we need the strong medicine of a full percentage point cut."

The Federation of Small Businesses told the same Committee that banks were still failing to deal properly with smaller firms. The FSB welcomed the recent pledge of £4bn in support for SMEs from the European Investment Bank but remained concerned that funding - which will come through the banks - was not available now. A third of FSB members complained that credit is now less available and another third said existing credit had got more expensive in the last two months.

The FSB is also calling for a one per cent cut in interest rates to 3.5 per cent. The TUC wants a cut of 1.5 per cent.

The Bank of England monetary Policy Committee meets later today. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.