We Need A Banking System to help People

Small businesses are struggling to access the finance they need to grow, yet under David Cameron it’s business as usual for the banks.

The Tories are determined to cling on to the old economy in a global race to the bottom. If we’re serious about winning the race to the top with countries like China and India, then we need to build a new economy – one that allows us to earn our way out of the cost of living crisis. That means dealing with one of Britain’s broken markets: our banking system.

Britain’s banking system is dominated by just four banks that control 85 per cent of small business lending. This lack of competition is a root cause of poor service, a breakdown of trust and a massive drop of £56 billion in lending to business since May 2010. Part of the reason we rely too much on low paid,insecure work is that the small firms that could create the good, high paying jobs of the future can’t get the
finance they need to grow.We need to support small and medium sized Enterprises so they can grow our economy for the future and that means creating a more competitive banking system that works for those it serves.

That’s why the next Labour Government will bring in a legal limit to ensure no bank can get too big and that the market remains competitive for the long-term. We will boost lending to small businesses, improve the service to all customers and create new banks that will work for the communities they serve. Under a Labour Government, small businesses will have a better chance of getting the support they need to grow, employ more people at decent wages and help Britain earn its way to better living standards for everyone.

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