Are Project Merlin’s lending targets just a myth? On the basis of today’s figures it’s still rather hard to tell. The arrangement between the government and the banks did yield £214.9 billion of gross lending to businesses in 2011 — against a target of £190 billion, and a 20 per cent increase on 2010. But net lending also declined in every quarter of the year. And the target for lending to small businesses of £76 billion was missed by £1.1 billion.
The banks have put this shortfall down to fewer small businesses coming forward for credit — and there’s actually some truth in that. This survey suggests that small businesses did indeed withdraw their begging bowls as the year progressed. Although, in truth, some of them were put off more because they expected to be refused by the banks than because they didn’t want to borrow.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in