Finance frustrations dominate summit debate

Complaints over onerous bank lending conditions dominated the keynote debate at the Rebuilding UK Manufacturing summit. One delegate said: "I tick every box and have export enquiries coming out of my ears. But if you haven't got massive security the banks don't want to know. If a small business is going to grow we've got to get the finance." Another added: "I have a full order book at the moment, but I can't raise the cash. I could double my business with the extra capital, but the banks won't support me." The comments come despite pledges from major banks that they are keen to lend to the sector. Economist and panellist John Hawksworth told the summit: "There seems to be a big difference in perception between banks and companies." The government had now agreed its Project Merlin deal with major banks to boost lending to SMEs, Hawksworth stressed. He added: "If project Merlin doesn't deliver the goods it leaves the government- as a major stakeholder in the banks- with the question of how much does it want to get involved?" Business secretary Mark Prisk had earlier told the summit the government was determined to deliver the right conditions for manufacturing growth. He said: "We've been taking positive actions: lowering corporate tax, cutting down on red tape and a deal with the banks to increase finance." Over 150 manufacturing representatives attended the Manufacturing Summit. The event debated a blueprint for delivering sustained growth in British industry and was held at the IMechE headquarters at Birdcage Walk, Westminster, London.