Today’s Government announcement of a £20 billion loan guarantee scheme for small and medium-sized firms is a pale copy of Conservative Party policy and a move which seems unlikely to get the banks lending at the level required to help the economy.
The scheme will, in effect, enable the Government to insure banks against companies defaulting on loan repayments.
But David Cameron and George Osborne have argued for some time that £20 billion is not enough and, instead, Ministers should go further and underwrite £50 billion of loans.
Time will obviously tell whether this Labour Government has, yet again, made the wrong call.
The scheme will, in effect, enable the Government to insure banks against companies defaulting on loan repayments.
But David Cameron and George Osborne have argued for some time that £20 billion is not enough and, instead, Ministers should go further and underwrite £50 billion of loans.
Time will obviously tell whether this Labour Government has, yet again, made the wrong call.
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