Boost the economy with bank lending

I understand that public spending, capital projects and private investment would boost the economy but there is something else that needs to be sorted in order to ensure that the big spending review gamble works.

 

As recent figures by the British Bankers Association have shown, mortgage take up continues to fall and banks continue to have low levels of lending to small business.

 

So we need the banks to step up their lending of mortgages so they are not as expensive for the lower deposits and banks to lend more willingly to small business. Won't that cover any loss to the economy through the loss of public spending?

 

Can't the government with its ownership of banking shares not have some influence on this?

Cap on expensive short term loans

Left Foot Forward has posted a link to the campaign to end legal loan sharking. The title of the campaign is a little misleadering as the Labour MP for Wigan, Lisa Nandy is actually calling for a cap on the charge for credit. However this is a better idea than a total ban. This will still allow credit lending to continue and will not stop these loans. Many People on low income need these loans to help them live from day to day.

The early day motion also calls for alternative sources of affordable credit. This is a must as it is very unfair the that the poorest in Britain pay the highest price for credit in Europe. It is also very important because as Tony Burkson on twitter points out 'Loan sharks exist because of demand' and 'not everyone can go to the bank for a loan.'

Please do join me in sending a letter to your local MP to ask them to sign the early day motion. This can be done very easily at http://action.compassonline.org.uk/page/speakout/EDM660