By Claire West

New figures from the Bank of England’s ‘Trends in Lending’ report show banks withdrew a further £2.3 billion from business lending in May, bringing the total figure over the last year to £46bn.

Commenting on the Bank of England’s report, which finds that over the past year, the banks took back £45.9 billion more in loans than they lent to business, Liberal Democrat Treasury Spokesperson, Lord (Matthew) Oakeshott said:

“The banks inflicted a savage £46bn squeeze on British business in Labour’s last year in office.

“Stopping this savage bank squeeze on business and getting them lending again to boost growth and jobs is a top priority for the Coalition after Labour’s grisly economic legacy.”