One in five of UK construction SMEs has been forced to abandon plans for growth and investment because they are unable to raise sufficient funds from banks, the Federation of Master Builders (FMB) has revealed today.

Brian Berry, FMB Chief Executive, said: “In our latest FMB’s industry survey, 19% of our members reported that bank lending policies had led to them putting aside growth plans. The danger is that the continuing refusal of the main high street banks to lend to viable building companies will hold back future growth for years to come.”

Berry continued: “The FMB has been making it very clear to policymakers that until the banks change their lending policies, growth will continue to be hampered and the industry will not be able to deliver the improvements to our housing stock and the increased number of new homes that politicians of all parties say they want to see.”

Berry concluded: “Today’s speech by Ed Miliband has helped place a focus on the major banks and their lending policies. Any measures which will improve the flow of funds on reasonable terms to small firms will be welcomed by the industry. We want to see all the main parties placing access to finance for SMEs at the heart of their manifestos for the next parliament.”

To read more about Ed Miliband’s speech on improving bank lending to viable small businesses click here. 

To read the National Audit Office’s recent report into improving SME access to business finance schemes, click here.

The Federation of Master Builders is about to release its latest quarterly state of Trade Survey results. For more information and to sign up to receive future news releases from the FMB, please click here.