Mandelson angry as CBI boss defends 'bullies'

LORD Mandelson has squared up to one of the country's most senior business leaders, accusing him of betraying smaller firms and defending "bullying banks".

The Business Secretary turned on Richard Lambert, director general of the Confederation of British Industry, over the government's efforts to improve lending to small businesses.

Mr Lambert had called Lord Mandelson's plan to set up a panel to overrule bank lending decisions "dotty" and "unworkable".

Lord Mandelson hit back at what he called the CBI chief's "shocking and shameful" indifference towards the plight of small and medium-sized enterprises.

He insisted that Mr Lambert "needs to get his priorities right" and give a voice to the CBI's smaller members.

The row flared after Mr Lambert dismissed the government's plan to create a panel to which small businesses could appeal if they feel they have been unfairly refused a bank loan.

He said in a newspaper interview: "This is completely dotty. It will never see the light of day, it is quite unworkable and pure political rhetoric."

Lord Mandelson said Mr Lambert's remarks were "a betrayal of the thousands of viable small and medium-sized businesses that are being treated bloodily by banks and are, in many cases, at risk of being pushed over the brink".