Question
To ask His Majesty's Government what steps they are taking to ensure financing business development is affordable for small UK firms.
Answer
Through the Growth Guarantee Scheme (GGS), government supports small UK firms to access loans they could otherwise only obtain on worse terms, or not at all. At Mansion House, the government expanded GGS to support £3.35 billion of lending a year by 2028/29 and extended maximum loan terms to ten years. The Start Up Loans programme also offers loans of up to £25,000 at a fixed 7.5% interest rate for businesses that have been trading for up to five years. Together, these measures help small firms access affordable finance for activities such as business development.
Verdict: GREEN (88/100)
The question asked what the government is doing to help small firms access affordable finance, and the reply answers it directly. It names the Growth Guarantee Scheme, with its expanded £3.35bn lending target and loan terms of up to ten years, and Start Up Loans at a fixed 7.5% rate. The specifics are concrete enough that the person who asked should have what they need without having to follow up.
How we got there
| Question item | Coverage | Specificity | Rationale |
|---|---|---|---|
| What the Government is doing to ensure that financing business development is affordable for small UK firms. | Addressed | Direct | The reply names concrete government measures for affordable finance for small firms: the Growth Guarantee Scheme (with its expanded £3.35bn lending target and ten-year maximum loan terms) and Start Up Loans at a fixed 7.5% rate. It then ties these together as helping firms access affordable finance for business development, which directly answers the item. |