UK election sparring begins in earnest, but the real issue is tackling productivity

The UK's general election campaign officially kicked off last week and it is no surprise that markets woke up to the ensuing political discourse: the UK equity market underperformed the major markets, losing 0.7 per cent. The decline came in spite of relatively sanguine economic reports, including a modest upward revision to fourth quarter GDP, consumer confidence reaching its highest level for almost 13 years and solid manufacturing data.

If we can remove SME fear of funding rejection, we can release the brakes on the UK economy

Issued on 22 January, the latest Bank of England ‘Trends in Lending' report clearly showed the divide that still exists between large and small companies when it comes to borrowing money. But according to FundingKnight CEO Graeme Marshall, years of being turned down for finance has resulted in the hesitancy of smaller companies to borrow money. This seems to holding back the UK economy.