Taxpayers May Have To Contribute To GBP1bn Business Loan Fund

Fri, 08 Jan 2010

The Government is reportedly struggling to reach its £1bn funds target from banks to finance its National Investment Corporation (NIC) scheme for small and medium-sized businesses.

Announced by Gordon Brown last year, the NIC is a fund designed to specifically help SMEs and is supposed to be funded by the UK’s largest retail and investment banks .

But at the end of last year it was reported that only Lloyds Banking Group and RBS had committed money to the NIC, with both agreeing to put £100m each into the fund.

Reports now suggest the government may have to use a large amount of taxpayers’ money to meet its £1bn target.

According to The Times, senior financiers are scheduled to meet the Department for Business next week in a final attempt to get banks on board.

The newspaper said that several investment banks are reluctant to support the NIC fund largely due to the new bonuses tax that was announced in last year’s pre-Budget report.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page



 

Business Newsletter

Please enter your email below and subscribe to our monthly newsletter

Reduce mortgage paymentsSave on Your Mortgage

Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.

Health InsuranceProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.