INDUSTRYNEWS
SPONSORED BY DUFFELLS
Small firms missing out on
cheap finance, says FSB
The Federation of Small Businesses (FSB) believes small firms
could be missing out on cheaper finance as new figures shows
around two-thirds (61%) of firms haven’t heard of Funding for
Lending (FLS).
Current results show an increase in lending for the first time
through FLS, a £1.6 billion rise of net lending the main high street
banks. But while it welcomes this, the FSB believes more needs to
be done for businesses to have loan applications accepted.
Some £17.6 billion than has been taken out of the scheme in
total by the banks and lending over the scheme is relatively flat,
so the FSB is pleased that the data shows the price of finance has
begun to fall.
The survey shows less than a third (29%) of respondents
are, however, aware of FLS. The Federation wants to see the
communication about availability of cheaper finance stepped-up
by the banks.
The FSB is hopeful the Government’s Business Bank will
oversee improvements in communication between banks and
small businesses and offer guidance on focusing governmentbacked schemes, to the specific needs of small firms before
January 2015.
Federation research also shows other sources of finance are not
widely knows, as the survey also reveals that fewer than four in
10 are aware of being able to borrow from alternative or specialist
lenders, such as peer-to-peer or asset finance providers.
John Allan, FSB National Chairman, said:
“Many small businesses have been affected by the lack of access
to financial support during the financial recovery and have relied
on non-bank lenders to keep them afloat. We hope the small
increase in lending from Funding for Lending (FLS) continues to
build. However, with many firms unaware of what FLS is we want
to see an increase in communication that the banks are open for
business.
“We hope the increase in competition from non-bank lenders
in the scheme will continue to deflate the cost of borrowing and
boost lending to small firms. Only when the banks tailor their
packages specifically to certain sectors and improve the way they
advertise those products to small businesses, will small firms get
the finance they need.”
MISLAYING PRISON KEYS COSTS TAXPAYERS
£100,000 A YEAR TO CHANGE LOCKS
Taxpayers are footing a
£100,000 a year bill to change
the locks in prisons because
guards have mislaid keys, it
has been disclosed.
Four prisons have had to
replace all their locks over
the past three years because
officers lost crucial keys,
ministers have admitted.
It has cost taxpayers £300,000
since 2010 to call in locksmiths
to prevent escapes. In total
during the past three years,
around 140 sets of keys have
been lost, ranging from those
for prison gates to escort
chains.
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THE SEP/OCT 2013 ISSUE
SPONSORED BY ADVANCED KEYS
Shadow justice secretary
Sadiq Khan, who obtained
the figures quoted, said:
“I’ve heard of locking up
prisoners and throwing away
the keys, but losing the keys is
ridiculous.
“This is breathtaking
incompetence of the highest
order and is money the
taxpayer can ill afford to
waste.”
The errors cost £79,525 to
put right at the category B
Swaleside jail on the Isle of
Sheppey in Kent. Replacing
locks at the Glen Parva young
offenders’ institution in
Leicestershire cost £173.608.
A further £84m418 had to
be spent at Warren Hill young
offenders’ institution in
Suffolk and at the fourth jail,
HMP Birmingham the bill for
replacing the locks came to a
staggering £415,276 - although
that bill was met by G4S which
runs the category B jail.
The Prison Service insisted
that no prisoner escaped as
a result of the losses. Justice
minister Jeremy Wright said:
“Following these incidents,
vigilance at the prisons was
increased regarding key
security and events that may
lead to a prison needing to be
relocked.”
Andrew Neilson, director
of Campaigns at the Howard
League for Penal Reform, said:
“With budgets dwindling year
on year, the Prison Service
ill afford spending hundreds
of thousands of pounds on
changing the locks.”
A spokesman for the Prison
Service said: “Incidents like
this are extremely rare. We
always investigate them
thoroughly and update
our security measures
accordingly.”
To read more, visit www.locksmithjournal.co.uk