Vince Cable, the Business Secretary has expressed his concerns regarding banks not being able to meet the agreed lending targets, which is part of Project Merlin, in quarterly lending figures that will be published.

The project involved banks setting £190bn aside each year, to lend businesses coupled with enhancing their small business lending to £76 billion. Presently, Cable stated that the Prime Minister has warned that if the banks do not address the situation, the Government will increase their taxes.

As expected, bankers have reacted to the accusations led against them emphasizing that they have done all in their power to make the money available to businesses, which is affected by lack of demand.

Small businesses have constantly complained that though they wish to borrow, the rate is too high for them.

As a result of failure to meet the agreed lending target, the Government has stated firmly that, if businesses aren’t borrowing, banks will have to add more effort to “drum up businesses” early this week, but the banks are not excited about their demand.

Moreover, Vince Cable and the Prime Minister are reported to be keen on, working on boosting more borrowing.