South: Banks must prove they are lending

South East Regional Minister Jonathan Shaw has called on the region's banks to make good on their claims that they are "open for business".

And he urged companies to engage in a dialogue with the banks about how to access the finances they need to emerge stronger from the economic downturn.

Access to finance has been a significant issue affecting businesses through the recession.

At the latest meeting of the South East Economic Delivery Council, which brings together regional and local leaders from business, government and the third sector, the Minister said access to finance was essential for companies' future success.

The meeting was also attended by a representative of NatWest and RBS who explained the services available to business customers.

Jonathan Shaw said: "It is absolutely essential that businesses in the South East are able to access the finance they need in order to grow and invest. I have heard some good things today about what one bank is doing to support business customers, for example through a dedicated hotline and a number of practical guides designed to help businesses in their dialogue with banks. I urge all banks to open their doors to this region's businesses, and to provide the levels of custom and service that we would all expect.

"I would also encourage businesses to be on the front foot in talking to their banks, and I know that through Business Link there is excellent support available to help with those discussions."

Government support available to businesses includes the Time to Pay scheme, which has seen £576m taxes deferred across the region, as a result of almost 32,000 agreements with businesses across the South East; Business Link health checks, of which there have been more than 16,200; and the Enterprise Finance Guarantee Scheme which has seem more than 800 new loans offered to businesses in the South East totalling almost £83m.

Peter Ibbetson, chairman, Small Businesses for NatWest and RBS, attended the SEEDC meeting and explained the services on offer to businesses.

Afterwards he said: "It is important we get the message over that we are open for business.

"At NatWest and RBS we are currently providing new loans to over 5,000 businesses each week. It is important that businesses can feel confident in working with their banks, and that's why we are offering a combination of committed overdraft and a price promise, to show that we are open for business."

And Roger House, chairman of the Federation of Small Businesses, said: "It is essential businesses maintain their efforts to access finance, and talk to the banks.

"The FSB role is twofold - to ensure that action is taken where banks do not provide the levels of support and service that we should expect; and to work with our businesses to support them in accessing the advice and help that is available, for example through Business Link. Today's meeting has helped us make progress on both fronts."