Following discussion with local business leaders, who highlighted examples of excessive charges and fees on business lending, Stafford MP Jeremy Lefroy took the matter to the House of Commons. During Business questions, Mr Lefroy asked the Minister for Business and Enterprise, Mark Prisk MP, what steps he has taken to increase access to finance for small businesses. The Minister replied:

“The coalition is committed to ensuring the flow of credit to viable small and medium-sized enterprises. The emergency Budget contained several measures, including the enterprise finance guarantee, the growth capital fund and the enterprise capital fund. However, unlike the previous Government, we are addressing proactively problems in the banking sector before rather than after they irreparably damage the economy.”

Speaking up for businesses in Stafford constituency who have struggled to gain access to finances at affordable levels, Mr Lefroy added:

“Many small businesses, including those in my constituency, face much higher facility fees, even when they can get access to finance. Does the Minister agree that banks should not use the current situation to hike up fees, and will he take this up with them?”

Mr Prisk replied:

“Indeed, we already are. I want to stress and put clearly on the record the fact that we are not willing simply to allow the situation to continue. Small businesses are crucial to our economy. We want to ensure that banks understand that. My right hon. Friend the Secretary of State and I meet regularly with the banks. If we find that they are clearly pushing such charges up, we will make them come to see us in the Department and ensure that they understand that we are not happy and that we will act to ensure that they change their behaviour.”

Mr Lefroy welcomed the minister’s answer as an encouraging commitment from the Government to take action to support small and medium-sized firms. He also called on local businesses that are experiencing problems accessing affordable finance to make him aware of their situation:

“Businesses in Stafford constituency need access to affordable finance to be able to invest in new jobs and create the economic growth we need. I would like to hear from any business that has a viable business plan and has been refused finance or charged large arrangement fees. I will ensure ministers are aware of these cases”