Bank task-force questioned

A pub finance expert has dismissed the new bank-led taskforce set up to stimulate lending to small businesses as a "talking shop".

The British Bankers' Association (BBA) which represents the UK's top six banks, has written to Chancellor George Osborne outlining plans designed to stimulate a private sector recovery.

"We, like you, believe there is a real need to make sure that viable businesses are able to obtain the finances they need to support the recovery of the UK economy," said BBA chairman Stephen Green.

He said the taskforce will assess the demand for business finance and examine market challenges before making recommendations to Government.

But Acorn Finance director Paul Thompson said overall the taskforce wouldn't make a lot of difference to the pub sector, which he said had been suffering from a lack of finance since before the recession. He added that bankers were "nervous" about lending to pubs because of negative press about leasehold pubs, which was "brushing off" on the rest of the trade.

"It's a talking shop. They're looking at the problem, but if people need money now, this won't make a difference."

But Thompson did welcome the fact that the banks had stopped "burying their heads in the sand" and admitted that they weren't lending to small businesses.

John Walker, national chairman of the Federation of Small Businesses, welcomed the news but called for the discussions to be "open, honest and not just a PR exercise".

The group will be made up of representatives from Barclays, HSBC, Lloyds Banking Group, Santander, Royal Bank of Scotland and Standard Chartered, with representatives from the Treasury, Business Innovation & Skills Department and Bank of England.

They will report to Osborne in October.