Renewed anger at weak lending to smaller businesses
The Bank of England said credit conditions remained especially difficult for smaller firms, as the Federation of Small Businesses claimed that lack of competition between lenders in Scotland exacerbated the problem.
The bank said small and medium-sized firms appeared to be the biggest losers from the continued squeeze on lending in June, when businesses of all sizes repaid £3.5bn more than they borrowed. Net lending by the major UK lenders remained weak in July, the bank said.
