A government business lending scheme for SMEs has come under criticism from MPs sitting on the Public Accounts Committee (PAC).

The scheme, which is designed to stimulate UK economic growth by supporting developing SMEs, is failing to provide the required investment and encourage banks to finance business growth.

Supporting and growing SMEs represents an integral aspect of the government’s programme for economic development, providing jobs and local investment.

Margaret Hodge, chair of a committee on public spending, said: “Despite government attempts to encourage lending to SMEs many still struggle to access the finance they need”.

The committee identified that the government was failing to effectively utilise SME support programmes.

EU creates new procurement rulings

A report released by the committee said: “The departments' schemes are managed as a series of ad- hoc initiatives that are launched to address particular weaknesses in the market, rather than to act as a coherent programme”.

European SMEs buoyant about growth