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Osborne calls for loan scheme as 10 businesses a day go bust

Friday, January 9 2009

George Osborne

George Osborne has stepped up the pressure on Labour to adopt our plans to free up banks’ lending to businesses after new figures revealed nearly ten firms are going bust every day because of the credit crunch.

The Shadow Chancellor announced that we have tabled an amendment to the Banking Bill that would establish our plans for a National Loan Guarantee Scheme to underwrite bank lending to businesses.

He stressed, “The Bill will be debated when Parliament returns next week and we will press our case. It presents the Prime Minister with a clear choice. He can support the radical action needed to limit the effects of the recession or he can continue to achieve nothing.”

Official data shows that the number of company liquidations has risen from 241 a week to 304 a week in the space of a year – meaning almost 10 businesses a day are going under because of the credit crunch.

George warned, “Every day that Gordon Brown dithers, he is putting at risk people’s jobs and livelihoods and futures. That’s why we need action and action now.”

Read more about our National Loan Guarantee Scheme

George Osborne MP

George is Shadow Chancellor of the Exchequer. He has worked in a wide range of departments during his political career.

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George Osborne launches 'It's Your Money' (Photo credit: Steve Back - www.politicalpictures.co.uk)

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