Welcome for small businesses action plan - York Liberal Democrats

11.30.00am GMT Mon 27th Oct 2008

LIBERAL Democrats in York have backed plans to help small businesses survive the looming recession.

The plan by the party to boost businesses was launched by leader Nick Clegg and the party's Shadow Chancellor Vince Cable. The plan includes:

• a substantial cut in interest rates to lower the cost of loans and investment;

• immediately overhauling the Small Firms Loan Guarantee Scheme to improve government support for business loans;

• banks which receive government financial assistance adopting a new code of conduct on rearranging business credit and overdrafts;

• developing with energy companies an assistance package for small businesses struggling with high energy bills

"Small businesses are the lifeblood of the economy here in York and its villages," said Madeleine Kirk, Prospective Lib Dem MP for York Outer. "It is vital that we give them a fighting chance to get through the recession.

"The government has given a massive bailout to the banks. But ministers must now look at the bigger economy. Small businesses here in York, and throughout the country generally, are suffering from the downturn. Profits are being squeezed and jobs are at risk.

"A big cut in interest rates will be a big boost to many local businesses and could mean the difference between staying open or closing down.

"Nick Clegg and Vince Cable have taken the lead with their plan to help businesses and I am giving it my full backing."