British banks have cut back on lending to small businesses in all but 22 postcode districts in the UK, according to data published for the first time , sparking accusations that lenders are failing to support a key potential area of economic growth.
More than 80% of the country’s 120 postcode areas experienced a contraction in lending. Measured at the level of regions lending fell everywhere, across all nine regions in England as well as in Scotland and Wales.
The breakdown shows small businesses in London and the south-east are receiving a smaller proportion of lending than the size of the local sector would merit.
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