The Press and Journal (Aberdeen and Aberdeenshire)

Banks need to do good deal more about charges

Survey: Half of small companies unhappy over their payments to lenders

- BY KEITH FINDLAY

Half of Scotland’s smaller firms believe they get a raw deal in what they are charged by their banks.

That was one of the headline findings in a survey carried out on behalf of TSB, one of the leading high street lenders north of the border.

The study also found that across the UK more than

“This report demonstrat­es there’sstillalot­of worktobedo­ne”

two-thirds of SMEs (68%) believe their needs are being overlooked in favour of larger, more profitable companies.

The findings were no surprise for north and north-east representa­tives at the Federation of Small Businesses (FSB), or SME owners in the region.

FSB north-east developmen­t manager David Groundwate­r said: “FSB has campaigned hard for an affordable banking service that meets the needs of small local businesses right across the land.

“This report demonstrat­es that there’s still a lot of work to be done.”

Mr Groundwate­r’s counterpar­t in the Highlands and islands, David Richardson, said TSB’s Boosting Local Business report highlighte­d the importance of face-to-face bank services.

“We can only hope that our big banks take this to heart and stop their closure programmes,” Mr Richardson added.

Annie Macdonald, managing director of Carloway Tweed Mill on Lewis, said: “Bank charges really matter to wee businesses like mine.

“I would certainly welcome anything that makes the system easier to understand and operate, and cheaper”.

Pearl Hamilton, who runs Pearl’s Pet care in Forres, said: “Times are tough enough for small businesses. Additional financial burdens that are put in our way are both unnecessar­y and unwelcome.” Royal Mail warned annual profits were expected to tumble by up to 28%, sending shares to a record low.

Mr Back yesterday said it had been a “challengin­g” past few months but he vowed to turn the business around, saying the group was reviewing its UK network, reining in costs and boosting flagging productivi­ty.

He added: “There will be a greater emphasis on how we connect customers, companies and countries through our domestic and internatio­nal businesses.

“There will be a clearer focus on financial performanc­e and management accountabi­lity.

“We are focused on pulling all the short and medium-term levers at our disposal to improve our performanc­e.”

 ??  ?? CASHING IN: The survey on behalf of TSB showed that many small and medium sized firms in Scotland are critical of banking charges
CASHING IN: The survey on behalf of TSB showed that many small and medium sized firms in Scotland are critical of banking charges

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