BCC: Lending from banks essential to reduce unemployment
Article Date: Jan 22 2009The government must force banks to lend again if the UK is to battle rising unemployment levels, according to the British Chambers of Commerce.
David Frost, director general of the organisation, says more firms are being forced to make employees redundant as they cannot get money to keep their business profitable.
'Unless banks start behaving more responsibly by unblocking credit markets, cashflow will continue to be a major issue for UK firms,' he adds.
Frost states that this week's bailout must be used to the maximum benefit of small firms.
Figures from the Office for National Statistics reveal that unemployment levels in the UK hit 1.92 million between September and November last year.
This represents a rise of 131,000 from the previous three months and is the highest level since September 1997.
Brendan Barber, general secretary of the Trades Union Congress, says: 'There is no disguising how bad today's employment figures are.'
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