Bank Lending and Credit (Businesses)

Part of Chancellor of the Exchequer – in the House of Commons at 2:30 pm on 6th December 2011.

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Photo of Stewart Hosie Stewart Hosie SNP Chief Whip, SNP Deputy Leader, Shadow SNP Spokesperson (Treasury) 2:30 pm, 6th December 2011

Bank lending funds business investment, so I welcome some of the measures that the Chancellor has announced. However, if the lack of lending is a consequence not of availability or cost but of reduced aggregate demand, and if business investment continues to fall or be sluggish, is he not at all concerned about the fact that the vast majority of next year’s gross domestic product growth—0.7%—will be driven by business investment? Should that happen, where would it leave his growth forecasts?