Banks urge Reeves to boost lending to small businesses

SMALL businesses could turn over an extra £10billion if the Chancellor beefed up a government lending scheme, say the big banks.

- BY SAMUEL NORMAN

UK Finance — the body that represents the likes of Barclays, Lloyds and Natwest — is urging Rachel Reeves to grant a fivefold increase in the maximum loan under the Growth Guarantee Scheme.

It allows firms with a turnover of up to £45million to borrow up to £2m, protected by a 70% government guarantee, giving the lender a greater safety net.

UK Finance chief David Postings wrote to the Chancellor that expanding the GGS “could materially improve access to finance for businesses and support investment, productivity and regional growth”.