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| Darling pledges business support | Darling pledges business support |
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| Alistair Darling has said it is vital to provide funds to small businesses as he prepares to unveil a £4bn package of support for British firms. | Alistair Darling has said it is vital to provide funds to small businesses as he prepares to unveil a £4bn package of support for British firms. |
| The chancellor says the funding from the European Investment Bank will be made available to small and medium sized firms through High Street banks. | The chancellor says the funding from the European Investment Bank will be made available to small and medium sized firms through High Street banks. |
| Traditional lending by the banks has dried up due to the credit crisis. | Traditional lending by the banks has dried up due to the credit crisis. |
| Mr Darling said he was "concerned" about instances where healthy businesses were being refused funding. | Mr Darling said he was "concerned" about instances where healthy businesses were being refused funding. |
| 'Difficult period' | 'Difficult period' |
| There are fears that thousands of firms could go out of business in the coming months as the economic downturn worsens and banks, hit by the credit crisis, continue to be reluctant to lend money. | There are fears that thousands of firms could go out of business in the coming months as the economic downturn worsens and banks, hit by the credit crisis, continue to be reluctant to lend money. |
| The government has made its multi-billion pound bailout of three of the UK's largest banks conditional of them restoring the availability of funds available to small businesses to 2007 levels. | The government has made its multi-billion pound bailout of three of the UK's largest banks conditional of them restoring the availability of funds available to small businesses to 2007 levels. |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| However, there has been little sign of this happening yet and the government has said that the European money - which will be lent to banks so that they can pass it onto their customers - will be vital to supporting many businesses. | However, there has been little sign of this happening yet and the government has said that the European money - which will be lent to banks so that they can pass it onto their customers - will be vital to supporting many businesses. |
| The chancellor and Business Secretary Peter Mandelson will meet with bank bosses later on Thursday to discuss the initiative. | The chancellor and Business Secretary Peter Mandelson will meet with bank bosses later on Thursday to discuss the initiative. |
| Mr Darling said some £4bn in additional funds would be available to the UK from the EIB - the lending arm of the European Union - for the next three to four years. | |
| "It is very important that as we enter what is going to be a difficult economic period that small businesses can get access to funds," Mr Darling said. | "It is very important that as we enter what is going to be a difficult economic period that small businesses can get access to funds," Mr Darling said. |
| He said he was worried that, in some cases, viable businesses were not able to get funding and promised to step in if banks were found to be "unreasonably withholding" money. | He said he was worried that, in some cases, viable businesses were not able to get funding and promised to step in if banks were found to be "unreasonably withholding" money. |
| While admitting that not every business would be able to receive funds, he said it was essential the "pool of money" available to firms returned to levels seen before the credit crunch. | While admitting that not every business would be able to receive funds, he said it was essential the "pool of money" available to firms returned to levels seen before the credit crunch. |
| "If you have got a good business in front of you and if your prospects are good, the pool of money available is the same as it was in 2007. | "If you have got a good business in front of you and if your prospects are good, the pool of money available is the same as it was in 2007. |
| "What I can't guarantee is that anyone who walks in the front door of the bank will get what they want. It would be daft to claim that. What you can say is the pool of money will be the same." | "What I can't guarantee is that anyone who walks in the front door of the bank will get what they want. It would be daft to claim that. What you can say is the pool of money will be the same." |
| Fiscal changes | Fiscal changes |
| Mr Darling also defended the government's new approach to fiscal policy, outlined in a speech on Wednesday. | Mr Darling also defended the government's new approach to fiscal policy, outlined in a speech on Wednesday. |
| The chancellor paved the way for the government to relax its fiscal rules on borrowing and debt levels by stating it would be "perverse" to apply them rigidly at the moment and it was "sensible" to raise borrowing to maintain investment in crucial areas. | The chancellor paved the way for the government to relax its fiscal rules on borrowing and debt levels by stating it would be "perverse" to apply them rigidly at the moment and it was "sensible" to raise borrowing to maintain investment in crucial areas. |
| "History tells us when the economy slows down if the government stops spending money we make a difficult position worse," he said. | "History tells us when the economy slows down if the government stops spending money we make a difficult position worse," he said. |
| He added that "only the government was big enough the support the economy" as the downturn forced private firms to cut back activity. | He added that "only the government was big enough the support the economy" as the downturn forced private firms to cut back activity. |
| The opposition has warned ministers against a "spending splurge", saying it will cause further damage to the public finances. | The opposition has warned ministers against a "spending splurge", saying it will cause further damage to the public finances. |
| Mr Darling said he was "confident" the economy could get through the downturn but warned of "choppy waters" ahead. | Mr Darling said he was "confident" the economy could get through the downturn but warned of "choppy waters" ahead. |