Mr. Geoffrey Clifton-Brown (Cotswold) (Con): At a time when base rates are coming down, many small businesses find that their effective rate of borrowing, including arrangement fees, is double what it was last year, with many paying 15 per cent. Will the Minister send a clear signal to the banks tonight that that is unacceptable if the business fundamentals are the same as last year?

Mr. Thomas: My right hon. Friend the Chancellor has made it clear on many occasions that we recognise the considerable concern among the small business community and more generally about rates of lending and the price of that lending. That is why we are continuing to have an active dialogue with the banks, which continues on an almost daily basis. As I have said, the Secretary of State and the Chancellor will meet the banks later this week.


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