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Leading industry business association, the Association for Consultancy and Engineering (ACE), has welcomed the latest round of government support for the UK economy announced by business secretary, Lord Mandelson but urged banks to do more to improve credit provision to firms.
ACE chief executive Nelson Ogunshakin said: “ACE represents over 800 firms working in the UK construction industry. Around 700 of these are SMEs. The government’s agreement to guarantee up to 50% of up to £20 billion in loans for SMEs is excellent news for these firms. These loans will provide a welcome buffer to allow many firms struggling with falling workloads to see out the current crisis.”
Although ACE welcomed the business secretary’s announcement, the organisation is keen to see the banking sector do much more to provide lending facilities to firms. “Currently, firms are finding it very difficult to access banking facilities to get them through the current financial crisis,” Ogunshakin explained. “It is critical that the banks take note of Lord Mandelson’s announcement and start lending again to companies of all sizes in our sector.”
ACE had previously called on the government to take more action to help firms following the chancellor’s pre-budget statement in November last year. It urged Alistair Darling to encourage the recapitalised financial institutions to use part of their bail-out funds to support SME firms as well as large professional consultancy, engineering and contracting firms to ease the pressure on cash flow and mitigate potential insolvency within the sector. “They are feeling the pain now and we need action now,” Ogunshakin said in November.
Speaking after the business secretary’s announcement, Ogunshakin said: “ACE member firms are world beaters across many disciplines. They are long-term viable businesses with strong fundamentals that bring in a huge amount of revenue to the UK, but they do lack liquidity at present. By securing the future of such SMEs, by retaining the skills and expertise contained within them, the UK will bounce back quickly out of recession and into renewed growth.
“ACE is working to ensure that all of its members are made fully aware of their options at present, as making the right business decision may mean the difference between surviving and not. We welcome any opportunity to work with the Department for Business and stand ready to assist them wherever needed,” Ogunshakin concluded.
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For further information contact ACE communications and public affairs director Andy Walker on 07947 558654.
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