Small Businesses: Loans:Written question - HL1304

Q
Asked on: 05 September 2017
Department for Business, Energy and Industrial Strategy
Small Businesses: Loans
Lords
To ask Her Majesty's Government what assessment they have made of the impact of the finding contained in the Bank of England's Money and Credit June 2017 Statistical Release that there was a £0.2 billion fall in investment in non-financial small and medium sized enterprises in the year to June; and what plans they have to increase investment in such enterprises.
A
Answered by: Lord Prior of Brampton
Answered on: 13 September 2017

The statistical release identifies that in July 2017 new loans were made of £5.2bn compared with repayment of existing debts of £5.4bn. However in the previous month there had been a £0.4bn increase in overall lending.

These movements are best understood as part of the broader context which shows that since summer 2016, loans to non-financial small and medium sized enterprises (SMEs) have consistently been higher than the previous 12 months and this remains the case in the latest data. In the 12 months ending July 2017, net bank lending to SMEs actually rose by £1.2bn.

We are working hard to give UK SMEs the support they need to start and grow. Growth Hubs provide information and guidance across the country and British Business Bank programmes are supporting £3.4 billion of finance to more than 59,000 smaller businesses.

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