David Cameron
“I had my constituents saying to me at Christmas time ‘look my credit line has been withdrawn, my overdraft facility has been taken away even though I have never breached any of the rules that my bank has set.
“ ‘They are charging me extra interest and special fees and have taken away the money I ought to be able to borrow’.
“And this is the real tragedy for businesses up and down the country, and the way out is not to cut VAT and waste all the money as the Prime Minister has done.
“The way out of it is a national loan guarantee scheme. It’s quite simple you basically say to the banks ‘look, if you lend money to businesses you charge a small premium over the normal interest rate as an insurance scheme in case any of the loans go wrong’.
“But the government will stand behind them. This would encourage the banks to get the money out of the banks and in to the businesses and help businesses as you say, big ones, as well as small ones.
“It desperately needs to be done.”
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