Treasury Accused of Ignoring Plight of Small Business Under No-Deal Brexit

The Treasury has gone “Awol” in recent weeks, ignoring banks’ efforts to co-ordinate an emergency funding programme for small businesses in the event of a no-deal Brexit, according to senior industry figures. Three senior bankers said the Treasury had ignored requests from banks to provide support for small and medium-sized enterprises, despite fears that a disorderly exit would disrupt SMEs’ cash flow, triggering a sharp increase in loan defaults across the sector, the Financial Times reported. A senior banker at one high street lender said they were “staggered” by the lack of engagement from government compared with previous crises. “We spoke to them and suggested a government-backed scheme to tide people over — they nodded wisely then did nothing.” Small and medium-sized businesses, defined as having fewer than 250 employees, account for about half of the UK’s private sector revenues and 60 per cent of jobs. Read more