Seema Malhotra MP, Labour’s Shadow Chief Secretary to the Treasury, responding to the announcement by the Government and Bank of England of the extension to the Funding for Lending Scheme, said:

“Under George Osborne small businesses are still struggling to get the access to finance they need to grow. Every small business looking to expand knows that our banking system is simply not fit for purpose. For small businesses, ‘too big to fail’ means ‘too big to lend.’

“The decision by the Bank of England to extend Funding for Lending indicates very clearly that, despite all Osborne’s talk of recovery, they don’t expect lending conditions to improve any time soon. Rather than sticking plaster, we need an overhaul of our banking system, improving choice for consumers and delivering patient, long-term investment for businesses.”