Strategic investment bank for manufacturing needed as banks get
tougher on credit
6 January 2012
Unite, Britain's biggest union, says the latest Bank of England
report showing credit for companies is becoming scarce is more
proof of the need for a strategic investment bank to support
manufacturing.
According to the Bank of England's quarterly Credit Trends
report for the fourth quarter of 2011, banks are raising rates on
loans they make to business and plan to toughen the covenants on
new loans. Unite fears the tougher lending environment will damage
the UK's manufacturing sector.
Unite assistant general secretary, Tony Burke, said: " We are
facing the worst recession since the 1930s, yet the government's
long promised re-balancing of the economy to assist UK
manufacturing has not got off the ground.
"In order for manufacturing to grow businesses need access to
loans and credit. Unite is campaigning for a strategic investment
bank to help UK manufacturing companies to access finance at this
very difficult economic time.
"The news is especially grim for the UK's small and medium sized
companies which make up 80 per cent of manufacturing in the UK.
These companies are desperate for access for finance. How much
worse can it get for manufacturing under this government?"
ENDS
Contact: Ciaran Naidoo on 07768 931 315
