Another �20m!

[Kathyan]

How much more of our money is Brown going to give away? The banks are getting another bail out tomorrow as well and what do we get? 2.5% off VAT!

http://news.bbc.co.uk/1/hi/uk_politics/7835937 .stm

http://news.bbc.co.uk/1/hi/business/7836259.st m

[stokemaveric]

its the banks that have caused this unholy mess anyway,yet they either will not or grudgingly pass any interest cuts on to us....i own and run a succesful company with a full order book well into 2010....i went to the bank for a loan of �15,000 so that i could stop renting the units which i rent for the manufacturing side of my business so that i could free up capital to buy a unit....thus saving me �20.000 a year in rent and other expenses...good business sense in my eyes and it would have enabled me to expand and to probably employ a couple more people....you dont have to be a genius to know that the answer was a resounding NO...no wonder there is a credit crunch when the banks will not allow small businesses like mine to flourish.....

[Kathyan]

It's ridiculous stoke. We bail out the banks, but they won't help us! It makes you feel that they don't want you to be successful!

[stokemaveric]

you are so right kathyan,it is so frustrating,i took my new business plan,my full accounts...i even offered my other small business as security but they didnt want to know...what chance has a new business venture have of ever getting off the ground????

[rov1200]

I' m surprised the above answers have not heard of the Small Firms Loan Guarantee scheme that was unveiled this week

http://news.bbc.co.uk/1/hi/business/7827273.st m

[stokemaveric]

thank you rov1200 but my application was in november 2008 i shall not be going to the bank anymore i have other funding in place now to take my business forward but it will take longer than anticipated........

[R1Geezer]

Primarily they are trying to get the banks to lend by guaranteeing loans. Money is not being given directly. However there is a danger that this will merely encourage irresponsible lending which got us into this mess in the first place.

[jake-the-peg]

What's your solution Kathyan?

Let them go under? How will the country work without banks?

Nationalise them?

[Kathyan]

To be honest Jake, I don't know. But it seems to me that the taxpayer is bailing out the banks but the banks aren't passing on the help to their customers. What happens if this latest bail out fails? Do they just keep bailing them out time after time? When is enough going to be enough?

[Quinlad]

But you admit that the alternative is probably even worse?

[Kathyan]

If someone could tell me what would happen if the banks went under, I would be extremely grateful! I don't really understand how the financial world works. At the moment all I can see is the Goverment throwing money at the banks and the banks not passing it on. Just where is all this money going?

[cazzz1975]

I bet you will all be rushing to vote labour in again in a few months