Recession will deepen if firms can't get credit

2.18.00pm BST (GMT +0100) Tue 1st Sep 2009

A record £8.4bn fall in business lending was revealed by the Bank of England today.

Commenting on the figures, 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 to boost lending are only having a limited impact as banks continue to hoard money.

"It is critical that viable businesses get the credit they need if we are to see a good recovery for the UK economy."