Funding for Lending Scheme 'having effect' on loans

The Funding for Lending Scheme "is effective" and has lowered interest rates on loans, according to the government.

Financial Secretary to the Treasury Greg Clark told BBC News that small businesses were being marketed to for the first time, but it was still early days for the take up of offers.

The Bank of England announced that net lending fell by £2.4bn in the final quarter of last year compared with the previous three months.