HC Deb 15 April 1969 vol 781 cc956-7
2. Mr. Barnett

asked the Chancellor of the Exchequer if he will make a statement on the level of bank lending.

The Chief Secretary to the Treasury (Mr. John Diamond)

Yes, Sir. Lending by all the main groups of banks fell, after seasonal adjustment, during the latest month for which information is available.

Mr. Barnett

What action is the Chancellor proposing to deal with the situation whereby some financial organisations have completely rejected the Chancellor's advice, so affecting the policy which he is trying to implement?

Mr. Diamond

The banks as a whole have co-operated well, and I am sure will continue to co-operate well with anything my right hon. Friend has in mind. That will be for him to disclose a little later on.

Sir C. Osborne

Is the right hon. Gentleman aware that the bank squeeze has affected the small business man a great deal more than it appears to have affected the nationalised industries? Could he have a look at how much is being loaned in nationalised industries as against that being loaned to the small man?

Mr. Diamond

Yes, but in the meantime I can say that the amount of lending to the nationalised industries rose by far less than the amount of lending to the private sector.