This is a summary of the House of Commons Committee report, with recommendations to government. The Government has two months to respond. (the report was published in May 2024).
The committee looked into the difficulties for many small/medium sized businesses in accessing banking and credit facilities. It highlights the growth in the number of accounts that are closed each year by risk averse financial institutions.
Chair of the Treasury Committee, Dame Harriett Baldwin, said:
“When we set out on our inquiry into financing for small and medium-sized businesses, we weren’t necessarily expecting de-banking to emerge as a key issue. But as they say, you must go where the evidence takes you – and it’s clear there is evidence that some legally operating businesses are being unfairly de-banked.
Banks should be doing all they can to support small business in this country, not pulling the rug out from beneath them with little warning.
I expect our report will have something to say about what we’ve uncovered.”
It can be read by clicking the link below.
https://publications.parliament.uk/pa/cm5804/cmselect/cmtreasy/27/summary.html