Bank plan boost for pubs

By Gemma McKenna

- Last updated on GMT

Related tags: Bank of scotland, Lloyds banking group, Finance

Buck up Banks: MA campaign to get banks lending to pubs
Buck up Banks: MA campaign to get banks lending to pubs
The Government's plan to set up three or more new banks may make it easier for pubs to access funding, experts predict. Troubled institutions that...

The Government's plan to set up three or more new banks may make it easier for pubs to access funding, experts predict.

Troubled institutions that were bailed out by the taxpayer — Lloyds, Royal Bank of Scotland and Northern Rock — are likely to be broken down into "new" banks Williams & Glyn, TSB and a revived Northern Rock.

Chris Heard, partner at Marlborough Leisure, said the move would offer both brokers and licensees more choice.

"There is a major problem with consolidation of banks: if you've gone to three of four with a proposition, you very quickly run out of options. Brokers will have more choice of lenders to go to, and it will impact on licensees by giving them more alternatives on current accounts and their operating charges."

Paul Thompson, partner at Acorn Commercial Finance, said that more competition would be a good thing for lending to the sector, but added that more information is required on what the remit of each bank will be.

"Hopefully they will be full-service banks which would hot the market up a little bit," he said.

David Grant, head of UK business mortgages at Christie Finance, said: "Based on the assumption that these 'new' banks are well-capitalized and aren't carrying any of the baggage from the last year or so, the introduction of three of four new banks should be positive news for our clients with more choice and competition present in the marketplace."

Related topics: Property law, Other operators

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