UK MINISTERS TO MEET BANK BOSSES OVER LENDING TO SMEs-  HSBC, NatWest and Lloyds Executives to explain how to increase lending 

Ministers are set to meet bank bosses today to discuss how big lenders can support the government’s growth strategy as concerns mount inside Whitehall that small businesses are struggling to access the funds needed to make vital investments.

Senior executives from HSBC, NatWest and Lloyds are expected to explain how they will meet the government’s mission to increase lending after criticism from business groups about the lack of credit available after the pandemic.

The meeting comes only days before a review of lending to small and medium-sized enterprises (SMEs) closes and ministers consider whether to impose obligations on the banks to make access easier to cheap loans. Chancellor Reeves is concerned that restrictions on lending by high street providers will hold back SMEs that want to expand and help the economy to grow.

The Department for Business and Trade highlighted in its report on the sector before the review that overall loan success rates for companies applying for bank finance “are low in the UK at less than 50% on average”.

Many small businesses have opted to borrow from high-risk private lenders outside the banking sector, reporting that banks were unable or unwilling to provide loans, according to the same government study.