The UK’s Bank and Government Growth Strategy Commonly Know As “The Merlin Agreement”
The UK’s biggest banks have signed an agreement with the government this week. Many say that this is just what is required in order to help small business in this very difficult trading period.
The landmark agreement which has been signed by HSBC Bank, Barclays Bank, Lloyds Banking Group, Royal Bank of Scotland and Santander is designed to provide business with Aï¿½190bn of lending which includes Aï¿½76bn to small business. It is said this will improve the relationship between the government and the banks considerably.
After much debate and negotiating between the two it was also agreed that the banks will also put a curb on bonus pay. Senior Financial officials have advised that they have taken into consideration the “Public Mood” and feel that this will really help SME’s to start to grow throughout 2011 and beyond.
It is essential that small business receives the required capital to grow in such desperate times, as banks have been extremely restrictive with lending criteria and the transparency required when making their decisions. At present most small business owners feel they are being slowly strangled which is reverberating throughout the country and can be seen at its most prominent and manifesting in high rises in unemployment.
The questions remains, have the banks and government reacted quickly enough so they can implement their plans and release funds to the many business owners who require it?
Many experts predict that whilst the banks may agree to meet the government guidelines on lending to SME’s they will impose more stringent lending criteria which will continue to alienate most business owners.
Unless the banks release their stranglehold many more companies will fail and individuals will suffer. The rise in unemployment will increase and more families across the UK will suffer.
It is essential business owners protect their business by making cuts and it is crucial that the individual employees protect their income. As unemployment rises it is protection insurance that can provide that lifeline to the individual when they need it most.
Income protection insurance or payment protection cover will provide a 12 month, tax-free monthly benefit giving the individual time to find another position in this very competitive job sector.