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Britain needs a state-backed investment bank to end lending freeze

nick cowen, 27 February 2012

Neither America nor Germany rely solely on commercial banks

As George Osborne’s next Budget approaches and the UK teeters on the edge of recession, a new Civitas report reveals that the Government is failing to tackle the key barrier to growth. A lending freeze affecting small and medium-sized (SME) businesses is preventing economic recovery.

Extending Lending, by David Merlin-Jones, shows how state-backed investment schemes in the US and Germany have created better lending opportunities for SMEs, allowing them to expand and replace jobs lost during the financial crisis. Both the US and Germany have seen quicker recoveries than the UK since the crash.

2 comments on “Britain needs a state-backed investment bank to end lending freeze”

  1. Nice post which George Osborne’s next Budget approaches and the UK teeters on the edge of recession, a new Civitas report reveals that the Government is failing to tackle the key barrier to growth. A lending freeze affecting small and medium-sized businesses is preventing economic recovery. Thanks a lot for posting.

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