So while supply constraints received a fair amount of attention in the media, the main focus for banks (and often from government officials), was to talk about the need to address problems on the demand side.
It wasn't really until the Autumn Statement last month and the government's ‘credit easing' plan that supply constraints started to be addressed in policy. Credit easing includes the new National Loan Guarantee Scheme, which aims to pass on the government's lower cost of borrowing to SMEs via banks, the EFG extension, a new £1 billion Business Finance Partnership to invest in non-bank channels of lending, and a new Taskforce on Debt investigating non-bank lending.
We have welcomed the evening up as we see it of the supply/demand ledger. Improvements on both sides are desirable.
It's important that the government has acknowledged supply as an issue and importantly has acted to address the cost of lending.
There will be much in the detail of these schemes to work out however to ensure lending is truly additional and finding its way to SMEs that are not borrowing now. But for now we are hoping these schemes will make a positive difference.