Thames Valley FD's tell Government 'banks aren't lending'

Senior business leaders across the Thames Valley yesterday (27 June) delivered a stark message to the Government, saying that, despite the Government’s best efforts and the banks’ claims, they consider that banks are still unwilling to lend to successful and growing businesses.

This was the message given by finance directors from more than 20 of the region’s businesses to the Department for Business, Innovation and Skills at a James Cowper Kreston FD Club breakfast, held in Newbury on Tuesday 26 June.

The FD Club is organised and hosted by Thames Valley and South Coast accountants and business advisers, James Cowper Kreston and meets quarterly.  It provides a forum for finance directors across the region to discuss and debate business practices and tax issues that affect SMEs following a short presentation on a topical issue.  The speaker at this meeting was John Allison, the assistant director responsible for SME access to finance at the Department for Business, Innovation & Skills. 

Sue Staunton, partner at James Cowper Kreston, said: “It was a real coup for the James Cowper Kreston FD Club to have John spend the morning with us.  As well as outlining Government measures to help SMEs access funding, he was genuinely interested in the experiences of businesses at the coal face and in their suggestions, taking notes to feedback into the strategy formulation within BIS.”

Sue adds: “It is quite clear that businesses are increasingly finding the banks’ reluctance to lend an enormous frustration, especially when they are constantly being told by the banks that they are open for business.  FDs told time and again during the meeting of banks saying that applications do not meet lending criteria – a ‘computer says no’ mentality with no apparent explanation as to why.  There is also a lack of understanding of their businesses - the days of banks helping guide businesses through the lending process were felt to be gone.”

High also on the agenda was employment and the Government’s efforts to encourage young people back into work.

Sue said: “The Government’s Apprenticeship Scheme is welcomed and many would like to see it extended, but all FDs criticised the ‘red tape’ that surrounds it.  It is difficult and time consuming to implement and manage and could be made much easier.  Attendees were encouraged to hear from the Government that this is being looked at and is under review.”

The James Cowper Kreston FD Club will meet again in the autumn when it will discuss ‘positioning businesses to take advantage of the Government’s Patent Box’, a scheme designed to encourage businesses to register its intellectual property in the UK and pay just 10% corporation tax.

Sue Staunton, Partner, James Cowper Kreston LLP, tel +44 (0)1865 861166 or email