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Fresh support pledged for small businesses

First Minister Alex Salmond, the Business Secretary Lord Mandelson and shadow Chancellor George Osborne address conference in Aberdeen.

19 March 2010 10:52 GMT

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Fresh support pledged for small businesses

Business Time: Salmond, Mandelson and Osborne address conference. Pic: © STV

Fresh support for small businesses has been announced at their annual conference in Aberdeen.

First Minister Alex Salmond, the Business Secretary Lord Mandelson and shadow Chancellor George Osborne are among the keynote speakers.

The body has over 20,000 members in Scotland which protects and promotes the self employed and those who run their own business.

Earlier on Friday Lord Mandelson said a much tougher approach is needed to get banks lending to smaller firms,

Business bosses should be able to go "over the heads" of bank managers, according to the Labour peer, who said a recent easing of lending policies was not satisfactory.

Speaking in a radio interview he said: "Banks have eased the constraints they've been operating in their lending to small businesses, but I'm not satisfied with that - I think they have to go further.

"I know it's difficult for the banks because on the one hand they're being told to repair their balance sheets, and next they're being asked to increase their lending.

"They would see this lending as being more risky during a recession.

"We're now into recovery and what I'm concerned about - and I've discussed this with the banks - is that as the demand for lending picks up, as the recovery strengthens, they at the same time must respond to that and increase their supply of lending."


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