Brown vows to get banks lending to small businesses

Published on Wednesday 19 November 2008 09:28

PRIME Minister Gordon Brown today promised that the Government would take "all measures necessary" to get the banks lending again to small businesses.

The Prime Minister said that ministers were ready to bring forward proposals "very, very soon indeed" to get the banks to "accept their responsibilities".

In the Commons, Mr Brown repeatedly came under fire at Prime Minister's Questions over the failure of the banks to restore credit lines to small firm's, despite the Government's bail-out of the banking sector.

Tory leader David Cameron warned that businesses were being "strangled" while Liberal Democrats leader Nick Clegg accused the Prime Minister of being "complacent" in the face of the banks' refusal to co-operate.

Mr Brown told MPs that ministers and officials were meeting the banks and building societies "almost every second day" to try to resolve the problems.

And as Mr Brown and Mr Cameron clashed again over the Government's plans to cut taxes and raise spending to try to revive the flagging economy, the Prime Minister took a sideswipe at shadow chancellor George Osborne's warning that it could lead to a run on the pound.

"I would advise Conservative members not to talk down the pound," he said.

"I would advise Conservative members to take the advice of Lady Thatcher who said that trying to help the speculators and talk sterling down is the most un-British way."