Somerset recession will deepen if firms can't get credit - Cable

4.10.27pm BST (GMT +0100) Mon 7th Sep 2009

Commenting on the record £8.4bn fall in business lending revealed by the Bank of England, Liberal Democrat Shadow Chancellor, Vince Cable said:

"The figures make it clear that businesses right across the country are continuing to feel the squeeze of the credit crunch. If firms are unable to access credit it is likely we will see even more companies going under, deepening the recession and driving up unemployment. It is becoming clear that the Bank of England's attempts are only having a limited impact as banks continue to hoard money."

The Liberal Democrats at County Hall had put in place plans for helping Somerset businesses through - and out the other side of - the recession, including:

• A 'Business Boost Scheme' to help local business during the downturn by assisting them with a recovery plan and a 'business boost voucher' to help action it.

• A 'Buy local' initiative to promote local products, at the Royal Bath & West Showground and through 'Big Night Out' events in Somerset towns.

• Promoting Somerset as a place to visit within the UK, using billboard advertising and undertaking joint marketing work with neighbouring tourist destinations.

• 'Into Somerset', a public/private sector company promoting Somerset as a business location, bringing increased employment opportunities.

• Market town regeneration fund which provides match funding of between £5,000 and £25,000 for a market town project that can deliver real economic benefits.

In the light of the extra pressure placed by banks and the change of administration at County Hall, Sam Crabb, shadow spokesperson for Resources expressed his concern for the success of these schemes and for businesses in Somerset:

"The Tories have only talked of 'cuts' and 'freezes' since they took over control of the county council. Clichés such as 'doing more for less' are well-worn Tory phrases which are already proving to be ineffective. There's also an argument for 'invest to save' and not freeze the regeneration funds for market towns at a time when shops are most desperate for support. When will the Tories wake up to the need to support business and protect Somerset jobs?"

ENDS