Lord Sugar to head new task force

A panel including outgoing Federation of Small Businesses (FSB) chairman John Wright and former Lloyds TSB deputy chief executive Mike Fairey will help determine the role of the Small Business Credit Adjudicator (SBCA) announced in the Budget.

The SBCA will hear cases where a company may have been unfairly denied credit.

Yesterday, at a meeting with business leaders, Mr Brown said: "We remain concerned that there are still companies who are unfairly denied credit and we feel that they are powerless to challenge the decision."

But he said the new SBCA would consider individual cases and would have the legal powers to enforce his judgment, should he find in favour of a small business.

He said the panel will draw on their experience to "advise the Government on the role and responsibilities of this adjudicator."

The task force will meet banks and small businesses to discuss financing and credit issues and a consultation document should be published in the summer, the meeting was told.