Johnathan Dudley
The Black Country needs its own industrial bank if economic growth is to be achieved, a leading professional has warned.
Johnathan Dudley, Midlands Managing Partner at national audit, tax and advisory firm Crowe Clark Whitehill, said liquidity problems following the 2007/08 banking crisis were still hampering companies almost five years on.
With banks having to meet larger capital requirements and being reprimanded on almost a daily basis over a series of scandals, they continue to be circumspect about who they lend to, how much they will make available, on what basis they would make the capital available and what the changes are.
“With property prices slumping, collateral is reduced so there is a push towards debtor-based lending. The banks say that this gives greater visibility and, given the increased risks, charges have risen,” said Mr Dudley. “This is generally more expensive and often inappropriate for many businesses.
“This is a real problem which is not easily addressed.
“There are continued complaints about the difficulty of obtaining finance, particularly among SMEs.
“If we are going to build the businesses we need for the future and produce the jobs that are so necessary, we need to address this.
“The automotive industry has picked up enormously, led, in part, by the successful turnaround of Jaguar Land Rover (JLR). JLR is about to build its new engine plant near Wolverhampton. Suppliers are benefiting from this investment. We must capitalise on this because it is a great opportunity but our ability to do so is being jeopardised by a shortage of finance.
“More cash-flow lending for manufacturers is needed. In the present circumstances, with no sign of things changing, this means that a big initiative is required – an industrial bank.”
Mr Dudley went on: “Such a bank has been suggested at a national level, with Warwick Manufacturing Group’s founder Lord Kumar Bhattacharyya lobbying ministers and raising the matter in the House of Lords.
“This could and arguably should be sited in the West Midlands, the heart of the manufacturing industry, although a big campaign would be needed to persuade the Government that this is the way forward.
“At the moment, various government incentives to banks have just enabled banks to lend what they were already going to lend on ‘copper bottomed proposals’, but more cheaply More marginal propositions still aren’t getting a look in.
“Manufacturers and exporters need a ready source of finance at reasonable rates that they can rely on in challenging times. An industrial bank could deliver where mainstream banks have failed.”
This article was posted by Crowe Clark Whitehill.
Other articles by this contributor are:
- Black Country steel stockholder changes hands in management buyout
- Crowe Clark Whitehill named Auditor of the Year: Large Firms at the 2013 FDs’ Excellence Awards
- Crowe Clark Whitehill has faith in Gary
- Charities having to work harder to raise money
- Midlands manufacturers to meet Bank of England’s man on the spot
- Crowe Clark Whitehill helps Quest 4 Alloys regional growth fund
- Care home sector under the microscope
- Hot topic update on financial issues for your business
- Midlands SMEs need to wake up to RTI
- We have to get lending through to SMEs if recovery is ever to come
- Crowe Clark Whitehill warns of tax rebate email scam
- Survival of the family business
- Crowe Clark Whitehill tops charity audit league table for fourth year running
- Law firm finance experts to exchange views
- Deal makers must remain focussed, warns Crowe Clark Whitehill expert
- Young new faces are attracted to Crowe Clark Whitehill
- Crowe Clark Whitehill wins top Black Country business award
- Midlands tax director wins award for strategic focus
- Crowe Clark Whitehill’s business tax insight
- Exporters sitting on verge of multi-million jackpot
- Self employed – really?
- Call for general tax amnesty to clear the air
- Dave’s Stratford to Stratford ride helps wounded troops
- Fee recovery rate is critical to law firms’ health
- New rules will catch out some lawyers
- Black Country engineering firm is expanding after seeing a surge in automotive business
- Real time payroll system could mean penalties
- Adaptability is key to being a good pensions auditor
- Everyone’s an Olympian at Crowe Clark Whitehill
- HMRC experience pays dividends for Ian
- Black Country eyes on the skies
- Abbeychart acquisition is “Best” deal for Diploma
- Tax in the spotlight for lawyers
- Making the most of your property is critical
- Manufacturers welcome skills progress
- June deadline for web traders
- Skills are top of the agenda at Crowe Clark Whitehill
- Crowe Clark Whitehill staff help three local charities
- Budget needs to stimulate manufacturing – Crowe Clark Whitehill
- Investing in enterprise to get Spring boost
- Keeping up to speed on accounting developments
- Putting the ‘Great’ back in Britain in 2012
- Law firms will find new rules a challenge
- Crowe Clark Whitehill’s specialist insight for solicitors
- Celebrity success rings true for Lora
- Tax cheats between a rock and a hard place
- Coaching the next generation to succeed
- The Government clocks secret Swiss accounts says Crowe Clark Whitehill
- How to save on construction industry penalties
- Update your tax knowledge with Crowe Clark Whitehill
- Spotlight on the property market
- Tax cheats between a rock and a hard place
- Worcestershire school calls on Crowe Clark Whitehill’s academy experience
- Law firms tighten up as ‘Tesco law’ looms
- Now is a capital time to check your allowances
- Plumbers urged to come clean
- Crowe Clark Whitehill clients chuffed with steam train treat
- Crowe Clark Whitehill climbs industry rankings on back of strong growth
- Crowe Clark Whitehill Midlands offices move to new premises
- Crowe Clark Whitehill clients chuffed with steam train treat
- D&J Steels gears up for further expansion
- Academies turn to Crowe Clark Whitehill for specialist advice
- Call for consistency from HMRC
- Academies expert says effective management is key
- Coalition must continue commitment to manufacturing
- Hard pressed HMRC best handled by specialists
- Sharks circle small caps
- Step back and take a long look at your business
- Crowe Clark Whitehill launches Midlands charity initiative
- Crowe Clark Whitehill creating new Midlands centre
- Limber up for a VIAMBO deal
- AIM making a comeback
- Cash is key to LEPs success Lord tells Manufacturing Business Network
- Businesses need to pull together to beat tough times
- HMRC turns spotlight on ‘pre-packs’
- Flipping review could hit all home-owners
- Catch-all tax law looks inevitable
- So many Santas slipping and sliding for Kemp Hospice
- Drivers could be in for a windfall
- Charities set to struggle as public sector cuts back – Crowe Clark Whitehill
