Leader calls for bank lending details (York Liberal Democrats)

York Liberal Democrats <info@yorklibdems.org.uk>

Leader calls for bank lending details

December 3, 2008 12:00 AM

Liberal Democrat Council Leader of City of York Council , Cllr Andrew Waller has today called on banks to ensure that they help businesses through the "credit crunch", and asked for York businesses to bring forward instances where they were being put under unreasonable pressure from banks. This followed a meeting with York businesses last night at the Guildhall in the annual consultation with businesses over the council budget, and the meeting of regional council leaders with regional business leaders in Wakefield on Monday . At both meetings the business community asked for local political leaders to help take up the plight of local businesses at this difficult time.

Cllr Waller said,

"There is growing evidence from around the country that some businesses who have decades of sound accounting with banks are suddenly having loans called in at short notice threatening the viability of their business. At this moment it is anecdotal but Council leaders in the region have agreed to collect evidence of this happening in their areas and to take this to the government. If any York businesses have experiences of this then I would ask that they let either me at the Guildhall. It is important that we know about this before businesses go under and employment is lost."

"The Queen's speech, today, had been expected to cover this, but there has been little mention of the way in the way in which banks lend to businesses. As so much public money has been used to prop up the banking system, I think that we have a right to insist that credit is provided to businesses to maintain employment, and ensure that there is the capacity in the economy when the recovery comes."