Labour

Blow to Osborne's dwindling credibility if he u-turns on National Loan Guarantee Scheme - Leslie

Chris Leslie MP, Labour’s shadow Treasury minister, responding to reports that the National Loan Guarantee Scheme is to be wound down, said:

“This scheme was George Osborne’s flagship announcement at last year’s Conservative Party Conference so if he now u-turns on this it would be yet another blow to his dwindling credibility.
 
“If the National Loan Guarantee Scheme (NLGS) was always supposed to be replaced by the new Funding for Lending scheme then why, two weeks after that new scheme was announced, did George Osborne say that the NLGS would be extended?

“Despite promises from Ministers, net lending to businesses has fallen in every month of this government. And there are serious questions about whether the new Funding for Lending scheme will really see lending to businesses become cheaper and easier to access.
 
“With the Chancellor’s failing policies pushing our economy into a deep and deepening recession, it’s clear that this government is letting down British businesses. That is why Labour is demanding a real plan for jobs and growth, including tax breaks for small firms taking on extra workers, and examining the case for a British Investment Bank too.”