ADJUSTING the Funding for Lending scheme to better support small businesses is welcome, but the Government must also stand behind its Help to Buy scheme and find new ways to incentivise more house building.
That’s the view of the Federation of Master Builders. Brian Berry, Chief Executive of the FMB, said, “Our members have been telling us for some time the Funding for Lending programme has serious flaws, and the banks remain reluctant to lend to them. Small construction firms report access to finance is the greatest barrier they face when attempting to grow their business.
“Companies need to be able to secure financing to respond to increasing demand, which is beginning to improve thanks to enhanced consumer confidence and the Help to Buy scheme.
“By rolling back the portion of guarantees aimed at shoring up individual mortgage lending and concentrating instead on backing loans to small businesses, we hope our members will see strides forward on the part of lenders when it comes to financing the construction sector.”