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The Economy (Supporting Business)

I was not seeking to take credit for the actions of the Bank of England, which, as the hon. Gentleman is aware, is independent from Government. I was merely noting that on top of the fiscal stimulus introduced by the Government, the aggressive actions taken by the Bank, and the level of interest rates, are all big macro-economic factors supporting the economy at the moment. The hon. Gentleman is right to point out that interest rates are historically low, but small businesses in particular still find it difficult to access credit on terms that they find acceptable. We continue to have discussions with banks about not only the quantum of lending but the rates of interest charged. Banks must make commercial decisions according to their assessment of risk and creditworthiness, and a market adjustment has been occurring throughout the UK economy. I do not think what is going on in the UK economy is at all different from what is going on in other advanced nations currently. I want to mention the European Investment Bank and the onward lending to the small business community successfully negotiated by the Government. The UK's share of overall EIB lending to small and medium-sized enterprises has already increased from 2.2 per cent. in 2007 to 12.3 per cent. in 2008, as part of a four-year deal that has been negotiated. It is also worth noting the Government's enterprise finance guarantee scheme, which a number of Opposition Members criticised for being slow to spend, is proving extremely popular with businesses, and we are confident that it will support about £1.3 billion of bank lending to smaller firms this year. The most recent figures I have suggest that about £420 million of eligible applications from more than 3,800 firms have been granted or are being processed or assessed. More than 2,650 businesses have been offered loans totalling more than £250 million. The scheme is therefore popular. On top of that, the Government introduced the trade credit insurance scheme in the Budget. From May 2009 until the end of the year, suppliers are being given the chance to purchase six months' top-up insurance from private insurers, who are providing it on the Government's behalf up to an aggregate limit of £5 billion. That is real help being provided to business.