Bank referral scheme

SMEs are still awaiting the launch of the government’s bank referral scheme, which is intended to increase competition between finance providers and help stimulate the small business sector. There remains no delivery date for the initiative, as recent Bank of England figures showed the largest drop in small business lending since records began in June this year - a fall of £5.5bn compared with the previous month. Under the new referral rules, banks that reject SMEs for finance will be required to ask these firms whether they want their details to be shared with websites, which will then refer companies to challenger banks and alternative lenders report Harris & Co chartered accountants Northampton, the specialist small business accountants.