Vince Cable MP and Chancellor George Osborne
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Osborne to back 'credit easing' loans for small UK firms

Chancellor George Osborne will unveil credit easing schemes to release up to £40bn in loans to small firms when he delivers Tuesday's autumn statement.

Under one plan, the government would underwrite banks' borrowing so they could pass on cheaper loans to firms turning over less than £50m.

Loans of £20bn will be involved initially but this could be doubled.

Shadow chancellor Ed Balls commented that access to credit alone would not restore business confidence.

Robert Peston reports.

  • 27 Nov 2011