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Financial news round-up for Small Business - October 14
by Startacus Admin
Welcome to the Startacus monthly financial news round-up, brought to you by Sophie Turton of Crunch Accounting.
British SME confidence lags behind other major economies, yet London reigns supreme as the world’s most desirable city to live and work in. Bank lending to SMEs fell again over the past quarter, prompting the government to focus on challenger banks as a source of lending power to small business.
British SME confidence lags behind International companies
British entrepreneurs’ confidence in their company’s future prospects lags behind other large economies, the latest Sage Business Index has shown.
The report shows a UK business confidence rating of 62.55, just above the average across all markets of 62.02.
Brazil reigns supremely confident with a score of 71.62, followed by Singapore at 66.96 and Canada at 66.80. Banks were cited as a key factor to blame for the lack of confidence, alongside lack of support from the British government. Over two-thirds of businesses said the government isn’t doing enough to put pressure on the banks to provide capital investment for small enterprise.
Bank lending to SMEs falls by £400 million
SMEs are still struggling to access funding from big banks, the latest Trends in Lending report has found.
The Bank of England’s study shows lending to small businesses through the government’s Funding to Lend scheme fell by £400 million in the second quarter of this year. This fall is less steep than the previous three months, which hit a low of £700 million. However, more needs to be done to support Britain's growing businesses.
Government unveils plans to boost UK “challenger” banks
Government proposal to support so-called “challenger banks” started gaining traction this month as economic secretary to the Treasury, Andrea Leadsome, outlined plans to boost SME lending.
An agreement has been made with large banks to disclose lending data by geographical location to help challengers identify exactly where help is needed. SMEs who want loans will be matched with challenger banks and other finance providers.
Ms Leadsome said the government plan to create a “more level playing field” for challenger banks, while helping SMEs gain access to better finance, as well as financial guidance.
London crowned “most desirable global city to move to for work”
More people around the world want to live and work in London than any other city, a survey of 200,000 people working in countries has found.
Despite London being the most expensive city, with property prices increasing by 18.4% in the past year alone, one is six want to come here to work, ahead of New York and Paris.
Startacus gives a huge thanks once again to Sophie and Crunch Accounting for sharing their expertise !