Cautious welcome for new business loans scheme

A £20bn government scheme to try to boost bank lending to small and medium-sized enterprises has been launched by the chancellor.

Under the National Loan Guarantee Scheme, such businesses will be able to access loans with interest rates one percentage point lower than those available outside the initiative.

The British Chambers of Commerce has given the credit easing scheme a measured welcome, saying the government still needed to do more to help fledgling businesses.

Its director general John Longworth spoke to the BBC.