The British Chambers of Commerce (BCC) has backed the decision to extend the Funding for Lending Scheme (FLS) until 2018.
An announcement was made earlier this week by the Chancellor, George Osborne, that the scheme will continue for another two years – having been set to expire next month.
“Extending the Funding for Lending Scheme will reassure many businesses – particularly those that continue to struggle to get the finance they need to grow,” said the BCC’s Executive Director for Policy and External Affairs, Dr Adam Marshall.
“However the scheme in itself is not a magic bullet. It is imperative that the British Business Bank is fully scaled up at the same time, to support the ambitions of our future wealth creators and the long-term success of home-grown companies.”
FLS was introduced in 2012 in an attempt to stem revive lending to businesses and households.
It provides funds to banks and building societies at cheap rates with the amount of funding tied to their performance in lending to the households and businesses.