On Tuesday, I asked the Business Minister, Margot James MP, about the Royal Bank of Scotland (RBS) Enterprise Finance Guarantee (EFG) scandal.
The EFG was a government scheme established to help struggling businesses – especially construction firms – after the banking crash of 2008. However, RBS appear to have used the EFG to transfer debt to the government scheme to help with their terrible balance sheets. This caused many viable businesses, including ones in Delyn, to be put under tremendous pressure causing foreclosure.
After 9 years of inaction by this state owned bank the fight still continues for businesses that were destroyed by these alleged practices.
Recently, RBS apologised to small business customers as it revealed a £400m bill to compensate them for poor treatment in the wake of the banking crisis. However, it is not clear as to when this money will be paid and if it is the correct compensation for the businesses destroyed.
I asked the Minister if a review of RBS, and its selling practices, to small businesses will be reviewed by the Government. The response – which was one single sentence – from the Minister was deeply concerning. The Minister said she was “sure proposals will be made in the near future.” I don’t want the Government to be “sure” a review is going to happen. I want the Government to begin the review now. We must demonstrate to small and medium sized businesses that the UK Government is on their side. This inaction from the Government demonstrates that they are not.
I will continue to press the Government on this banking failure.