The Forum of Private Business isn’t convinced. "Although Lloyds TSB and HBOS are among the better banks in the services they provide for small businesses, there is a danger that, by merging, the choice available to business customers will decrease,” says Nick Palin, the FPB’s director of finance.

"The FPB’s advice has always been to shop around for the best deal. However, we are already seeing some of the big-name banks increase overdraft rates and impose restrictive charges.

“Fewer banks could mean a lack of competitiveness, less of a chance of securing better rates and more of an uphill struggle for small firms to control costs."

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