Small and medium-sized companies’ reluctance to borrow and invest is a key reason for the UK’s poor productivity performance, the state economic development agency has warned. The British Business Bank said its latest study of business finance found a “strong aversion” to borrowing to invest and warned that recent lacklustre confidence among employers had compounded a longstanding issue. The proportion of smaller businesses accessing finance fell from 50 per cent in the third quarter of 2023 to 43 per cent in the second quarter of last year, a report from the bank found. • Community lenders unlock £1bn for small firms rejected by banksBusinesses who believed they have underinvested most commonly cited credit being too expensive or felt they could not borrow at a

Source: The Times March 04, 2025 19:23 UTC