Stephen Timms MP, Labour's Financial Secretary to the Treasury, responding to George Osborne's incorrect claims about how business loan guarantee schemes work during Treasury Questions today, said:

"George Osborne's empty promises will do nothing to help people or business today.

"He has shown he doesn't understand how business guarantee schemes work when he says it 'did not add to public expenditure'.

"Such schemes require public spending at the point any participating firm defaults and the bank calls in the guarantee from government.

"The Tories have promised a scheme and then ruled out finding the money to fund it.  Promises the Conservatives refuse to pay for are nothing but a cruel con.

"We're offering real help to businesses - not empty promises from a do nothing Tory party."