Chancellor George Osborne has said he will listen to proposals regarding credit help for small businesses, a week after Drapers reported that indies faced a credit crisis because of changes to payment terms caused by withdrawal of brands’ credit insurance.
Paul Turner-Mitchell, co-owner of young fashion indie 25 Ten Boutique in Rochdale, this week took the issue to his MP, Labour’s Simon Danczuk, who raised it in Parliament following the Chancellor’s autumn statement on Tuesday.
Osborne expressed support for small businesses struggling in the face of diminishing levels of credit insurance, and pointed to two “broader schemes” – the National Loan Guarantee scheme and the Business Finance Partnership – to relieve the credit crisis facing indies.
He committed to £21bn in his statement for the schemes, though he pointed to a longer-term £40bn “envelope”. He welcomed proposals on credit schemes for smaller businesses, saying the Government was looking at “other things that might work within the envelope”.
“We’re looking at partnership schemes and other things that might work, and of course we are vigilant about conditions in the broader economy – including issues such as trade finance – that might be affected by the eurozone crisis,” he said.
Danczuk is looking to meet key retail players for further discussion on solutions to the indie credit crisis. He told Drapers: “This is such an important issue. It’s such an important sector for the economy and in terms of jobs for young people.”
Turner-Mitchell, who is rallying indies to support the emerging campaign, said he was “absolutely delighted” by Osborne’s response.