'Bank Bullying', 'Balancing act' Budget Explained at SME Growth Debate in Bristol

LONDON, March 25, 2010 - Timed to coincide with the Budget announcement, with informed
views on what it means for UK business, the second Business Growth Summit
organised by the National Business Awards took place at the Marriott Royal
Hotel in Bristol on Wednesday 24th March.

Presenting a global economic overview and his take on the
recession, keynote speaker Dr Dominic Swords, Business Economist and Visiting
Fellow at Henley Business School, said Chancellor Alistair Darling's budget
was a tight rope walk while juggling stimulus packages for domestic growth,
interest rates that won't negatively impact currency rates, and challenges
from aggressive foreign markets like China.

"As long as whoever gets into government doesn't end the
stimulus measures too quickly, we can avoid a double dip recession," said
Swords, who warned of the disjunction between the real economy and financial
markets driven by sentiment and perception.

A budget for growth?

The key areas of the budget for UK companies was a pledge from
RBS and Lloyds to make GBP94 billion of lending available to businesses, and
50% of this to SMEs; a GBP2.5 billion one off growth package for SMEs (part
funded by the GBP2 billion 'windfall' from the tax on bankers' bonuses); a
new GBP200 million capital growth fund for business; plus a doubling of the
annual investment allowance to GBP100,000 and raising the Capital Gains Tax
threshold for entrepreneurs to GBP2 million from GBP1 million.

A debate, chaired by broadcast journalist John Stapleton,
explored the impact of this 'steady as she goes' budget for UK businesses;
with Dominic Swords joined by Martin Lyne, Director for small and medium
business at Orange UK; Will Clark, Regional Director, South West and Wales,
Santander; and Richard Alvin, Founder of Capital Business Media and Managing
Editor of Business Matters.

Commenting on Darling's stimulus package for business, Martin
Lyne said: "The economy is fragile and GBP2.5 billion is a crumb compared to
other countries. It may help entrepreneurs but not the wider sector."

Fielding questions on the position of banks, Will Clark said
the Chancellor's arm twisting of RBS and Lloyds to deliver GBP94 billion of
lending could be counter-productive. "This move could force banks to
over-leverage at a time when businesses are more interested in reducing debt
and consolidating instead of building up their order books, so is this really
the best stimulus?" he asked.

"Banks must be prudent," added Richard Alvin, "and learn
lessons from the past."

Asked whether businesses were asking for funding in the right
way, and which types of business were most likely to qualify, Will Clark
added that companies had to work on their business plans. "The businesses
that succeed in getting funding from private banks have a business plan, are
using advisory networks, and have thought about contingency," he said. "We
look at their track record and proven management experience."

Picking up on the companies most likely to qualify, Swords
observed that a number of global banks were now targetting international
business. "They are looking at UK clients with the most export potential,
creating new products and using their international networks to find good
partners. Banks can offer more than money to help business."

Red tape to red carpet

Despite what was generally seen as a political pre-election
budget, the burden of regulation was cited by many of the delegates as the
main barrier to growth, with one commercial builder saying he was 'paying
someone one thousand pounds a week to fill in forms' and the owner of a video
production company saying that he only worked with sub-contractors 'because
of the suffocating effect of regulation on enterprise culture'.

The Business Growth Summits 2010 will be hosted in Manchester,
Bristol, Edinburgh, London and Birmingham and further strengthen the National
Business Awards' offering for public and private sector organisations through
this interactive and free to attend business conference series. To find out
more, visit www.nationalbusinessawards.co.uk/summits.

Note to Editors

About the National Business Awards

Open to organisations of all sizes from all sectors across the
UK, the National Business Awards in partnership with Orange is the UK's most
prestigious independent business recognition platform with its particular
emphasis on excellence, innovation and ethical business. The National
Business Awards connects the nations' professionals through its annual awards
ceremony; year-round conferences and round table events; and is United
Business Media's leading awards programme. Visit
www.nationalbusinessawards.co.uk for further information.

For further information please contact: Henriette Svensen, Communications Manager, The National Business Awards, Tel: +44-(0)207-234-8753, Tel: +44-(0)7500 091-7628, Email: henriette.svensen at ubm.com