Member of Parliament for North Ayrshire and Arran Katy Clark has welcomed a Government package worth up to £20 billion to support small and medium sized businesses. The moves announced by Business Secretary Lord Mandleson is aimed at getting banks to increase lending to small and medium sized businesses. Under the new measures the Government will guarantee 50% of £20 billion worth of loans as part of the Working Capital Scheme, which is open to companies with a turnover of less than £500 million; it will also guarantee 75% of £1.3 billion worth of lending to businesses of with a turnover of less than £25 million as part of the Working Capital Scheme. In addition a £75 million capital for enterprise fund has been set up allowing companies to sell debt for equity.

Speaking on the subject Ms. Clark said ‘I am pleased to see the Government announce a number of important measures which should provide real assistance to small and medium sized businesses. Small businesses play a vital role in North Ayrshire and Arran providing thousands of people with jobs as well as offering essential goods and services to local communities and it is imperative that they are properly supported during these difficult economic times. Any small company which is facing this problem must let me know so I can take up the issues with Ministers”

“It is crucial that the banks start lending again if many small and medium sized businesses are to survive. I believe these new measures will go some way to allowing this to happen and enable thousands of businesses are able to get the assistance that they require. At the end of the day if the financial institutions won't cooperate then givernment has to intervene. I have come to the view that given the banks have been so uncooperative over recent months despite the huge amount of support from the taxpayer that at least some of the major players need to be fully nationalised so that the publics interests are put first and that Governmetn policy on lending is made available to business and ordinary people. ”