Tony Hughes, Managing Director of Bredbury based Hughes Safety Showers, is leading a high profile campaign to put pressure on banks to support businesses and particularly SME’s.
Tony’s recent meeting with the Financial Secretary to the UK Treasury and
representatives of the British Bankers Association emphasised the need
for banks to live up to their lending commitments so that businesses,
such as Hughes Safety Showers, can play their part in getting the
economy back on track.
The meeting followed concerns raised by Stockport MP Andrew Stunell in
a House of Commons debate earlier in the year. In the debate, he
referred specifically to issues raised by Tony Hughes and the lack of
support companies like Hughes are receiving from the banks.
At the heart of the campaign for improved financial support is the disparity
between what banks are telling government and what businesses on the
ground are experiencing.
Left: Tony Hughes, Managing Director of Hughes Safety Shower
The meeting, arranged by Andrew Stunell between representatives of the banks, business and government, provided an opportunity to address this fundamental concern. Those attending included Tony Hughes and Financial Director Stephen Dootson from Hughes; Greg Clark MP, Financial Secretary to the Treasury, Andrew Stunell MP and Anthony Browne, Chief Executive of the British Bankers Association.
Speaking on behalf of many SMEs, Tony Hughes said that government needs to take a closer look at how the Financial Services Authority (FSA) polices bank lending.
“They also need to extend the time they set for banks to get in their money in accordance with the Basel II Accord and Bank of England guidelines. Banks must adopt a low to medium risk policy rather than the current no risk approach which is unjustifiably stifling the recovery. They are allowing bad debt experiences of the past to adversely prejudge perfectly sound and successful businesses that require finances to compete overseas, expand and create employment. Exporting is invariably seen as a risk too far and yet its growth is fundamental to the economic recovery.”
The bankers’ response that fewer companies are seeking loans and increased overdraft facilities was answered with the personal experience of those business representatives present. They said the reason is simply a lack of confidence or the fact that they have been told unofficially before making a formal application that the bank would not be interested in lending.
The British Bankers Association has been asked to respond to the issues raised during the meeting. Meanwhile, the campaign continues. Tony Hughes is convinced that the only way to make progress is to keep up the pressure on both government and the banks.