I was scanning the news as I always do and came across some information that made me a little hot under the collar, particularly as banks have been urged for months to help the SME sector.

According to a new report, business lending has fallen by £28 billion since the start of the global economic downturn.

Bank of England figures reveal that lending has declined sharply since the collapse of Lehman Brothers two years ago, and companies now owe £471 billion to the banks, down from £503 billion in September 2008.

British bank Aldermore said the downturn in credit availability has hit small and medium-sized businesses (SMEs) particularly hard.  Its chief executive, Phillip Monks, commented:

“SMEs are the engine of the British economy, but they can’t power on forever if their ability to make vital investments and to hire new staff is compromised. This is particularly worrying as the deficit tackling measures mean the private sector must take more of their strain.”