Government loan confusion holding back businesses, MPs warn

The Business Select Committee said there was a “myriad” of official schemes, which were “poorly” communicated and difficult for firms to access.

The committee’s inquiry into Government support for business discovered more than 600 schemes, with different funding, contacts and eligibility.

Too many companies were still having problems receiving financial support, said the MPs, urging the coalition to do more to help, especially small to medium sized enterprises (SMEs).

Labour MP Adrian Bailey, who chairs the committee, said: “Creating the best possible conditions for British business to thrive is vital to our country’s long-term economic prosperity.

“While the Government’s current approach is largely positive, we found businesses are not always clear about the support on offer, finding it poorly communicated, confusing and not focused enough on business need.

“If the UK is going to become one of the best places in Europe to start, finance, and grow a business, then Government needs to do better at getting the word out so businesses know what support exists.

“For budding entrepreneurs, start-ups, or established businesses trying to grow, access to finance is vital. Yet, the experiences of SMEs trying to access finance from the banks is still mixed. The Government needs to tackle this lending problem by capitalising on the British Business Bank’s expertise and creating clear signposting so that businesses are aware of the alternative finance providers which could help them.”