Pre-Budget Report

In two ways, I believe. First, the general impact of putting £18 billion into the economy between now and 2010 will help the economy generally. It helps in terms of confidence and general outlook. The fact that the Bank of England has been able to reduce interest rates to 3 per cent., the lowest that they have been since the 1950s, will also help businesses, because many of them borrow, which is why it is important that we ensure that banks pass on their interest rates. The measures that I announced today include the fund to help small firms at better rates than before so that they can borrow between £1,000 and £1 million, and measures for manufacturers that are exporters. There are many smaller firms in the west midlands and in other parts. Indeed, I have visited a number of small firms in the west midlands that export extremely successfully, and additional help is available in the guarantee. Those are just a few examples of how we can help, but, of course, we will need to do other things, too.