Cridland: Credit easing is a short-term solution

CBI secretary general John Cridland welcomes the government's decision to pay £20 billion to help small businesses borrow at a lower rate:

"This £20 billion initiative is a clear signal from the government that it is seeking to address aspects of access to finance for smaller businesses, including the cost of lending.

"The scheme, otherwise known as credit easing, should help bring down the price of loans to small businesses, but it will not solve the structural issues.

"For a longer-term solution, the government must act on recommendations in the Breedon review, which set out practical ways businesses could secure more 'patient' sources of funding over a longer timeframe."