Around six months have passed since Legal & General’s chief executive, Tim Breeden, published the results of the non-bank lending task force. The report estimated that businesses in the UK will be facing a shortfall of around £80 billion-£190 billion over the next half decade. In order to tackle this problem, Mr Breeden suggested many solutions which many people are hoping will be implemented, but so far have been slow in coming to fruition.
Most of the work that is being done on these recommendations has largely been taking place behind-the-scenes. The main difficulties it seems is creating schemes that are actually able to increase the amount of money that is being lent to businesses in Britain, rather than simply renaming and re-organising lending that would have taken place anyway.
Currently people are suspicious that there are too many initiatives being organised by the government in the area which simply make people believe that the government are trying to be too clever rather than actually organise a scheme that will help.
In the report, Mr Breeden suggested that something called an aggregation agency should be launched which would have the ability to lend directly to smaller companies. This would mean the companies which were struggling to get credit from a major bank would be able to get funding in order to expand.
In the report it seems as if he wanted to see a straightforward system setup where the government would have a state-sponsored bank where they would be able to conduct lending to businesses who really needed the money but were unable to secure funding through a traditional system. This is something that has not yet materialised and it is unknown whether it is something that is being planned by the government in the future.