The British Business Bank (BBB) will receive an additional £250m($410m) from the government in order to support small business lending; the amount allocated during last year was of £1bn ($2bn).

 

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BBB stated that it helped 8,000 small businesses in the first half of the year and it expects to generate £500m ($820m) per year in loans and investment.

 

Deputy Prime Minster Nick Clegg stated in Sheffield on December 3: "I am determined that all we do all that we can to help companies that have struggled to get the investment they need."

 

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He faced the criticism of the Labour shadow business secretary Chuka Umunna, who said at the BBC: "Scheme after scheme trumpeted by Ministers has failed to significantly improve access to finance for our wealth creators."

 

Paul Fisher, executive director for markets at the Bank of England in relation to the data of UK’s Central Bank said: "These data show that a significant improvement in credit conditions, aided by the FLS, is now feeding through lending. But credit supply to businesses remains relatively subdued, especially to SMEs."

 

Since the beginning of the scheme in August 2012 Nationwide has been the major lender with £9.7bn($15bn) allocated, while Lloyds and Royal Bank of Scotland have lent less than they have been repaid, recording a negative net lending of £2.2bn ($3.6bn).

 

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