Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of trends in the level of bank lending to (a) individuals and (b) businesses in the key areas reviewed by the Independent Commission for Neighbourhoods.

The Government recognises that credit, when provided responsibly, supports business growth, and can be crucial for people facing unexpected expenses or managing their cash flow.

The UK has a diverse landscape for credit provision to individuals and businesses, comprising traditional banks, challenger and specialist banks, and non-bank finance providers.

As part of this landscape, Community Development Finance Institutions (CDFIs) play a vital role in providing affordable credit to underserved consumers and businesses. In November 2024, the British Business Bank launched the Community ENABLE Funding (CEF) Programme, which aims to deploy £150 million over the next two years to ‘not for profit’ lenders, including CDFIs. This will enable these organisations to provide enhanced support to consumers and businesses by broadening access to finance. In 2024, CDFIs and social banks lent £96.7 million to 364 social enterprises, with 67% of this lending directed to the UK’s most disadvantaged areas.

Furthermore, in recognition of the important role responsible credit can play for consumers, the Government’s forthcoming Financial Inclusion Strategy includes a focus on access to credit, among other priority issues, and will seek to ensure people have access to useful products and services for their needs.