"Aldermore agreed in principle to participate in the NLGS, as it was a step in the right direction in terms of helping the UK's small businesses - the backbone of our real economy. However, the recently announced Funding for Lending Scheme (FLS) is a more promising initiative, as it should help directly improve the volume of lending to SMEs. Ensuring the consistent flow of credit to small firms has been a bigger issue for these businesses than the cost of that credit.
"Not only will the FLS increase the amount of capital available to SMEs, it will also provide some welcome relief to the strangled mortgage market - helping to give first time buyers the leg up that they so desperately need.
"This announcement is a positive sign that the government is beginning to devote more attention to solving the problems that lie at the heart of our stalling economy. It is encouraging that the government also wants to include the lending-driven challenger banks in the FLS. These banks stand ready, willing and are actually able to help more of Britain's SMEs and homeowners if given the equal opportunity to do so."
Notes to Editors
In March, Aldermore originally agreed in principle to participate in the NLGS. Since that announcement Aldermore has been in discussions with the Treasury to determine how best Aldermore could get involved. Those conversations have continued, however, in light of today's announcement, and despite a commitment to participate in principle, Aldermore will not have officially taken part in the NLGS by the time it comes to an end.