Oral question asked in the House of Commons, by Anne Moffat (Labour). It was answered on Wednesday, 18 March 2009 on behalf of the Scotland Office.

Unemployment (East Lothian)

Question: I am sure that the whole House will now want to hear my supplementary question. We currently have quite a good level of employment in East Lothian—over 80 per cent.—but I am concerned about the possibility that unemployment levels will rise both in East Lothian and in Scotland more widely. The position could be greatly improved if the banks adopted measures allowing them to enable small businesses to recover by lending them money. Constituent after constituent has said to me recently that they will have to make people unemployed because the banks will not lend to them. The arrogance of the banks beggars belief.

Answer: My hon. Friend has raised an important point to which the Secretary of State has already referred this morning: the need for banks to start lending in order to enable businesses to survive and to invest. We have introduced the necessary measures to make that possible. I am sure that she welcomed the recent announcement by the Royal Bank of Scotland of the provision of additional funds focused particularly on small and medium-sized enterprises, many of which are based in her constituency. It is important to note that the United Kingdom still has the second lowest unemployment levels in the G7 area, but we are not complacent. That is why, from April, we will be providing additional help for those who are unemployed for more than six months, in the form of a £1,000 recruitment subsidy. [Interruption.]

Secondary information