Funding for lending: 'Government must get a grip', says Labour

The Bank of England has announced plans to expand a lending scheme designed to help businesses and households.

The Funding for Lending Scheme (FLS), due to end in January 2014, will be extended for another year to 2015.

Banks will be given greater incentives to lend to small and medium-sized businesses, and creditors other than banks will be able to participate.

Shadow Treasury minister Chris Leslie welcomed the plan, but said more drastic action was needed.

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