Banks restrict SME growth

‘The banks are holding back the growth of SMEs and slowing the supply chain,’ said Sir Ronald. ‘They are inhibiting export opportunities that would do much to establish British manufacturers abroad, improve our balance of payments and increase employment in the UK. The present devaluation of the pound sterling against the euro and US dollar provides a tremendous opportunity for UK industry that is in danger of being lost.’

The EIA, which represents engineering SMEs, met with leading trade associations from other sectors and senior Bank of England officials recently to discuss the current economic situation and its effect on SMEs.

Putting forward the views of EIA members, Sir Ronald said that there were encouraging signs in the economy pointing to modest growth, despite variations by sector.

According to the EIA, there is some improved confidence, particularly among exporters, with export demand stronger, which has been helped by the depreciation of the pound. Price increases are difficult in the UK market, but exporters are said to have had the opportunity to increase margins.