Small Biz Needs Confidence

Desperate to jump start their recovery, the Bank of England announced an £80 billion cash injection to banks last week on the condition they pass it on to businesses and households in the form of cheaper loans. But the vice chairman of Barclays business Steve Cooper said the scheme doesn't address the core problem of companies' reluctance to borrow. "From a Barclays point of view I welcome it, but we do not need it," Cooper said, "What the business community needs now is confidence. Confidence is damaged by a number of things like the eurozone. I see a robust SME community in the UK and the survival rate is pretty good." He went on to say that claims by small businesses that banks weren't lending didn't add up. "Banks are lending, if they think the business is viable and requires debt and it shows that is can repay that debt," Cooper said, "We see a lack of borrowing caused by a lack of confidence. Eighty percent of people that come to us get loans and we want to help business grow."

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