Despite the fall in lending to businesses, the BOE said that the availability of credit to the corporate sector increased in the three months to May.
Commenting on the data, EEF chief economist Lee Hopley said that “far more” needed to be done to increase small manufacturing firms’ access to finance.
She continued: “In the long run, only a more competitive, dynamic, and diverse funding landscape will sustainably improve credit conditions for SMEs. This has to start with increasing competition for lending.”
This material is protected by copyright Ken Hurst 2013.