New Allica Bank research, published in The Times, has revealed that a £65 billion gap has opened up in SME lending over the last 25 years – and it's holding back UK growth and productivity.
'Productive credit' – the lifeblood of business investment and innovation – has been hit hardest. Business overdraft lending alone has collapsed from £18 billion in 2000 to just £2.7 billion today.
The result?
🔻 UK business investment is the lowest in the G7.
🔻 SMEs are investing at just a third of the rate of large corporates.
🔻 Loan applications are at rock-bottom compared to other OECD countries.
It’s time for action. Allica Bank is calling on the government to:
1️⃣ Supercharge the Growth Guarantee Schemes.
2️⃣ Work with the Bank of England to create a prudential framework that truly backs small businesses.
3️⃣ Back innovation in AI and relationship models to unlock more SME finance.
SMEs power Britain’s economy – let's give them the backing they deserve 🚀
📰 Read the story in The Times here: https://lnkd.in/epv2TMrJ
📗 Download the full report – 'Rebooting SME Finance to Unlock Growth' – here: https://lnkd.in/eB_uquR9
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