the Business Forum and
the Economic Partnership
in Brighton & Hove
Homepage    BCRP Intranet    Funding    Events    Knowledgebase    Links    About us     Contact us
Key projects



Workforce development 


Business &

Property &
Development sites




Consultation opportunities

Brighton & Hove Business Forum
8-11 Pavilion Buildings, Brighton, BN1 1EE
Tel: 01273 735442
Email: info@brighton

© Brighton & Hove
Business Forum

News - 28 April 2007

FSB wants to see better banking for its members

The service banks offer to small businesses is just not good enough says the Federation of Small Businesses (FSB). The major banks have again reported record profits but they are still not making the concessions that they were required to make by the Competition Commission.

The FSB has released the findings of its review of small business banking. The FSB's report, which surveyed over 4,000 small firms, looked at progress made since the Cruickshank Review of 2000 and the recommendations of the Competition Commission Inquiry of 2002 following a referral of the banks to the Commission by the Office of Fair Trading (OFT).

The three main strands of the report's findings were:

  • The majority of small businesses (70%) are satisfied with their bank;
  • But when the service goes wrong it goes badly wrong. Switching accounts, overcharging and poor customer services are the main areas where small businesses are not satisfied. A major cause of this is the lack of understanding of small businesses by bank staff; and
  • The banks are not fulfilling their commitment to the Competition Commission to offer free banking or pay at least 2.5% interest on business current accounts and to publicise these services to their customers (page 10).

Small businesses employ 58% of the private sector workforce, contributing 50% of UK GDP, and their success is a vital part of the economic well-being of the country. It is in the interests of the whole of the UK to ensure that they can succeed and they need affordable, reliable banking services to do so.

Mike Cherry, FSB Financial Affairs Chairman, said, "Banking services for small businesses have improved over the last few years.

"However, there is a long way to go before small businesses get the quality of service from their banks that they need and deserve. There has to be a culture change within the banks so that they understand the needs of their small business customers and can then deliver even better services for them. The current profit levels of the banks demonstrate that they have the capability to do this.

"The Competition Commission found that the major banks were making £2 billion per year in profits from small business banking. We call on the banks to live up to their undertakings to the Competition Commission or, if they fail to do so, for the regulators to make them."

Read related items on:
Legal and financial services
Federation of Small Businesses

Browse our business Knowledgebase or search by keyword


14 March 2018
Better Business for All Event with BEIS
7 March 2018
Brighton celebrates women in tech as Spring Forward festival returns for a fourth year 6 March 2018
Six months of success for BTN BikeShare 2 March 2018
Sustainability in Action masterclasses for Sussex businesses 2 March 2018
Doing Business in China comes to Brighton 1 March 2018
Brighton & Hove Chamber of Commerce presents: Protecting your brand- a guide for fast growth businesses 1 March 2018
Long haul passengers boost local economy and jobs, according to new Gatwick report on the 'Visitor Economy' 28 February 2018
Save time reporting crime 27 February 2018
Warren Morgan Resigns from Brighton & Hove City Council 23 February 2018
Brighton Technology Company, Paxton Ranks in Sunday Times 100 Best Companies to Work For 23 February 2018
Greater Brighton's Commercial Property Database 22 February 2018
SE-ASSIST - Launch of Loan Capital in Greater Brighton 19 February 2018
House Price update Q4 2017 19 February 2018
What would you do in a crisis? 19 February 2018
The investment journey for high growth entrepreneurs 9 February 2018
Make Change Count 2018 - helping rough sleepers in Brighton & Hove 8 February 2018
Brighton Technology Company Paxton Announces Recipients of New Scholarship Programmein Association with the University of Brighton 8 February 2018
Cyber London Accelerator Invites Summer 2018 Entries 8 February 2018
Innovate UK Launches Strand 2 Emerging and Enabling Technologies Sector Competition 8 February 2018
Success In Sussex As Food And Drink Heroes Crowned Winners 8 February 2018
UK Games Fund - Fourth Round Open to Applications 8 February 2018
Innovate UK & Prince's Trust Launch Young Innovators' Programme 6 February 2018
Brighton & Hove Food Partnership launches 'Kit Out The Kitchen' crowdfunding campaign 2 February 2018
Brighton & Hove Council and Crest Nicholson win £15m government funding to kickstart King Alfred project 1 February 2018
Could a Utilise Plus Programme grant help you? 1 February 2018
Shoreham Port Facilitates Huge Operation 18 January 2018
IUK Announces Collaborative R&D Funding for Connected and Autonomous Vehicles Simulation 18 January 2018
Renault-Nissan-Mitsubishi Launches $1 Billion Corporate Venture Capital Fund for Next Generation Mobility 17 January 2018
PORTlife #17 Newsletter Out Now 17 January 2018
Over £19,000 raised for Burning the Clocks 2017 11 January 2018
Brighton Main Line Improvement Project: Planned closures in October 2018 and February 2019 11 January 2018
Come on in! Fairtrade Fortnight 2018 8 January 2018
Sussex Business SkillSnap targets hospitality industry skill shortage 3 January 2018
House Price update 2017 Q3 20 December 2017
£14.35 Million European Regional Development Fund Launched 19 December 2017
Leading the way - Sustainability in Action masterclass 15 December 2017
Brighton is among the best places to start a business due to their strong growth factors 15 December 2017
GTR consultation ends 20th Dec 2017 13 December 2017
Ethical Food StartUp Programme - Idea Generation Workshop 12 December 2017
Utilise Plus launch programme of energy efficiency grants and business support for SMEs