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| Govt 'could lend directly to businesses' |
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| Latest Recruitment News - HR and Recruitment Legislation News |
| Written by DirectNews Feed |
| Wednesday, 12 October 2011 00:00 |
 Small London recruitment agencies may be in line to receive direct financial help from the government in the near future, an expert has suggested.At the Conservative Party conference last week, chancellor George Osborne unveiled credit easing - the coalition's latest initiative designed to stimulate economic expansion in the wake of the recession. This policy has been created specifically in order to help companies struggling to grow in the aftermath of the slump as the administration feels smaller organisations are vital to the overall fiscal health of the UK. And, in the opinion of Tim Leunig, chief economist of Centre Forum, this could potentially involve the government directly offering finance to such companies to avoid the issue of limited fluidity in the banking sector. However, speaking to the Guardian Business podcast, Mr Leunig indicated this appears unlikely due to the fact it would prove "very expensive". Therefore, he added that nobody really knows how the scheme will work, but noted he assumes it will be "quantitative easing with a few bells and whistles on". Posted by Daniel Frost 
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