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| Version 4 | Version 5 |
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| Darling warns banks on loan rates | Darling warns banks on loan rates |
| (20 minutes later) | |
| The chancellor is to quiz bank bosses over how much they charge small firms for loans, saying he is "extremely concerned" their rates may be too high. | |
| Alastair Darling said the cost of loans seemed to have risen, despite the UK's record low base interest rate. | |
| He told the BBC that banks had a duty to restore lending levels, saying the government did not rescue the banking sector "out of some charitable act". | |
| He has called a meeting with bank executives in Downing St on Monday. | |
| 'Do their part' | 'Do their part' |
| "The public will now understand it if they [the banks] don't seem to be doing their part," he told the BBC's Andrew Marr Show. | |
| "I want banks to rebuild their balance sheets, but at the same time because of the particular circumstances we are in now, we also need them to relend money." | "I want banks to rebuild their balance sheets, but at the same time because of the particular circumstances we are in now, we also need them to relend money." |
| It is hugely important that Mr Darling keeps tabs on the banks to ensure they are lending money to firms, and at fair rates Stephen Alambritis, Federation of Small Businesses | It is hugely important that Mr Darling keeps tabs on the banks to ensure they are lending money to firms, and at fair rates Stephen Alambritis, Federation of Small Businesses |
| A number of banks needed emergency funding from the government due to the credit crunch. | A number of banks needed emergency funding from the government due to the credit crunch. |
| They included Lloyds, which owns Halifax and Bank of Scotland, Royal Bank of Scotland (RBS), which includes NatWest, and Northern Rock. | They included Lloyds, which owns Halifax and Bank of Scotland, Royal Bank of Scotland (RBS), which includes NatWest, and Northern Rock. |
| Others, such as Barclays and HSBC have not needed any government cash. | Others, such as Barclays and HSBC have not needed any government cash. |
| Mr Darling's comments come after a report by financial website Moneyfacts said banks had increased the interest rates they charge for personal mortgages nearly fourfold in recent months, despite the base rate remaining at a record low of 0.5%. | Mr Darling's comments come after a report by financial website Moneyfacts said banks had increased the interest rates they charge for personal mortgages nearly fourfold in recent months, despite the base rate remaining at a record low of 0.5%. |
| The British Bankers Association has defended the rise in the cost of borrowing, saying banks are facing "substantially" higher costs. | The British Bankers Association has defended the rise in the cost of borrowing, saying banks are facing "substantially" higher costs. |
| However, Stephen Alambritis, chief spokesman for the Federation of Small Businesses, said the chancellor was "quite right to haul in the banks". | However, Stephen Alambritis, chief spokesman for the Federation of Small Businesses, said the chancellor was "quite right to haul in the banks". |
| "It is hugely important that Mr Darling keeps tabs on the banks to ensure they are lending money to firms, and at fair rates," he said. | "It is hugely important that Mr Darling keeps tabs on the banks to ensure they are lending money to firms, and at fair rates," he said. |
| "Firms need to be able to reap the benefits of the historically low base rate." | "Firms need to be able to reap the benefits of the historically low base rate." |
| Economic recovery' | Economic recovery' |
| Mr Darling also reiterated that VAT will definitely return to 17.5% from the current 15% level at the end of the year. The rate of VAT was reduced to 15% on 1 December 2008 to help boost retail sales. | Mr Darling also reiterated that VAT will definitely return to 17.5% from the current 15% level at the end of the year. The rate of VAT was reduced to 15% on 1 December 2008 to help boost retail sales. |
| Turning his attention to the wider economy, the chancellor said he was sticking to the prediction that the recovery will start "at the turn of the year", with modest growth being seen in 2010. | Turning his attention to the wider economy, the chancellor said he was sticking to the prediction that the recovery will start "at the turn of the year", with modest growth being seen in 2010. |
| Official figures showed last week that the UK economy continued to contract between April and June, although at a slower rate than between January and March. | Official figures showed last week that the UK economy continued to contract between April and June, although at a slower rate than between January and March. |
| The economy shrunk 0.8% last quarter, compared with a decline of 2.4% from January to March. | The economy shrunk 0.8% last quarter, compared with a decline of 2.4% from January to March. |
| Are you facing financial difficulties running your small business? Have you had to lose your business? Tell us your experiences using the form below. | Are you facing financial difficulties running your small business? Have you had to lose your business? Tell us your experiences using the form below. |
| A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. | A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |