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Recession will deepen if firms can't get credit - Cable and Randerson comment

September 2, 2009 9:31 AM

Commenting on the record £8.4bn fall in business lending revealed by the Bank of England today, Liberal Democrat Shadow Chancellor, Vince Cable said:

"The figures make it clear that businesses right across the country are continuing to feel the squeeze of the credit crunch.

Welsh Liberal Democrat Shadow Economy Minister Jenny Randerson added,

"In Wales the situation is worse where smaller businesses make up the backbone of the economy, especially in areas such as the Valleys.

"Access to credit is essential for businesses like these to continue to operate in a recession because their cash flow is often restricted.

"It is becoming clear that the Bank of England's attempts to boost lending are only having a limited impact as banks continue to hoard money. The Welsh Assembly Government needs redouble their efforts to show the banks how desperate this situation is."

Vince Cable confirmed, "If firms are unable to access credit it is likely we will see even more companies going under, deepening the recession and driving up unemployment.

"It is critical that viable businesses get the credit they need if we are to see a good recovery for the UK economy."