Government must help businesses beat the credit crunch - Howarth (Cambridge Liberal Democrats)

Cambridge Liberal Democrats <camlibdems@gmail.com>

Government must help businesses beat the credit crunch - Howarth

June 30, 2009 12:33 PM

MP David Howarth has called on the government to help businesses attract investment and export across the world to beat the credit crunch.

Mr Howarth has joined other MPs in signing a Commons' motion which warns that the tough trading climate could drive down UK exports by nine per cent, representing the biggest slump in trade since the Second World War.

The motion calls on the government to "do all that it can to further support trade and investment in the United Kingdom, and in particular to assist small and medium-sized businesses in attracting inward investment and exporting their goods and services globally."

Mr Howarth said: "There is no doubt that this is one of the toughest trading periods we have seen for a long time and companies in Cambridge and across the country are finding the climate very difficult.

"Banks are still restricting credit to solvent borrowers and small businesses with exemplary credit records are still facing unrealistic demands for higher security and fees."

Research by the Liberal Democrats has discovered that the depression is costing the economy £8.6bn a year, up two thirds in a decade. Lost earnings have risen by £3bn since 1999.

"The government must do all in its power to encourage responsible lending to help businesses weather this recession and safeguard jobs," added Mr Howarth.