PM says bank should help host

By John Harrington

- Last updated on GMT

Related tags: Bank, Prime minister of the united kingdom

Gordon Brown
Gordon Brown
A licensee is reapplying for business loans under a Government-backed scheme - on the personal advice of Gordon Brown. In a move that could offer...

A licensee is reapplying for business loans under a Government-backed scheme - on the personal advice of Gordon Brown. In a move that could offer hope to other hosts, the Prime Minister suggested Howard Boulter may have more luck after major banks promised to boost lending.

Boulter questioned Brown about the Enterprise Finance Guarantee Scheme, where

Government guarantees 75% of loans, on Radio Four's You and Yours show.

The Devon licensee failed to secure loans under the scheme when he applied in February.

Boulter told the PM: "It's evident that banks are being kept going with our money but not keeping us going with Government support."

Brown said around 500 loans worth about £40m had been secured under the scheme. "I hope you could apply again and look at where additional money put in recently will help you get the loans you want. Banks have a duty to lend.

This is the first time banks have signed lending agreements requiring them as a matter of policy to lend additional money."

Brown said the agreements, signed in the last few days, include the Royal Bank of Scotland agreeing to lend an extra £25bn this year and the same sum in 2010.

Boulter asked for £60,000 from HSBC to pay off his overdraft and add a cycle hire business at the Leg O' Mutton Inn, an Enterprise leasehold in Yelverton.

He wanted £20,000 from NatWest for redecorating and meeting environmental health rules at Deer Park Inn, Stoke Fleming, held on a private lease.

Boulter told the MA: "It's going to be quite fun to write to the two banks saying, 'further to my recent conversation with Gordon Brown...'"

What's your experience of the Enterprise Finance Guarantee Scheme? Email wbua.uneevatgba@jvyyvnz-errq.pb.hx

Related topics: Professional Services & Utilities

Property of the week

Follow us

Pub Trade Guides

View more