Osborne confirms £40bn SME credit fund


Osborne confirms £40bn SME credit fund

Simon Quicke

The Chancellor George Osborne has confirmed the establishment of a £40bn credit easing scheme to underwrite bank loans to small firms as one of the main actions announced in the Autumn Statement.

Osborne has revealed at the weekend that the credit easing fund would be set up in order to take away some of the risks for banks lending to smaller firms as it looked to take additional steps to help SMEs get money to fuel growth.

In addition he also announced plans to spend £5bn on national infrastructure over the next three years and confirmed the £1bn scheme to try and get work placements for the young unemployed.

But the Chancellor also revealed that growth forecasts would be cut and borrowing forecasts revised upwards as the weak global economy took its toll on the UK performance.

The growth forecast for this year was revised down to 0.9% from 1.7% and next year will be even worse down to 0.7% from 2.5%. Government borrowing is also going to rise by an extra £100bn over the next four years.

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