According to the Federation of Master Builders (FMB), one in five UK construction SMEs have been forced to abandon plans for growth and investment because they are unable to raise sufficient funds from banks.
The latest FMB industry survey found that 19% of its members reported that banks' lending policies has led to them postponing expansion plans.
FMB chief executive, Brian Berry, said: 'The danger is that the continuing refusal of the main high street banks to lend to viable building companies will hold back future growth for years to come.'
He continued: 'The FMB has been making it very clear to policymakers that until the banks change their lending policies, growth will continue to be hampered and the industry will not be able to deliver the improvements to our housing stock and the increased number of new homes that politicians of all parties say they want to see.'
'Today's (17 January) speech by Ed Miliband has helped place a focus on the major banks and their lending policies. Any measures which will improve the flow of funds on reasonable terms to small firms will be welcomed by the industry. We want to see all the main parties placing access to finance for SMEs at the heart of their manifestos for the next parliament,' Mr Berry concluded.
