Borders MP Michael Moore visited a number of businesses in the Borders last week to hear directly from them about how the current economic climate is impacting on their businesses.

The individual companies that Mr Moore visited varied in terms of their size and sector, but each reported a single area of common concern: that the attitude of the banks, in particular the risk of them withdrawing or refusing funding, was making it more difficult to get through these economic times.

Another concern that was frequently raised was the lack of information about how support can be obtained from the European Investment Bank. The UK Government has failed to deliver on its promise to ensure that businesses have access to EIB funding.

Mr Moore has an increasingly large mailbag from local companies who are finding that, despite their individual prospects being healthy, the banks are suddenly retracting loan agreements and other forms of business support.

Commenting after he completed his visits last week, Mr Moore said:

“The fact that different businesses, operating in different sectors with different business models, all report that their number one concern at the present time is the behaviour of the banks shows that this problem has simply not been adequately addressed.

“Access to funding for legitimate, well-run businesses such as the ones I visited is absolutely crucial to see them through this difficult period.

“Since the Government now has a stake in many of our banks, it must use its influence to remove the uncertainties about lending and ensure that appropriate finance is available. At a time when credit insurance is increasingly hard to come by, banks must not penalise businesses who have healthy order books, and must support them instead.”

Mr Moore has written to the Chancellor demanding clarity about the terms of lending through the European Investment Bank.