Pro-active local MP Marcus Jones used parliamentary questions on Wednesday to raise concerns with the Chancellor about the way small and medium sized enterprises (SMEs) are being treated by banks.

Marcus greeted George Osborne’s statement to MPs about the Government’s new deal with the country's biggest banks that is aimed to curb bonuses, increase lending to small businesses and improve transparency on pay for executives, with cautious optimism.

During questions, Nuneaton’s MP took the opportunity raise his concerns directly with the Chancellor, insisting that many SMEs are being forced into accepting new lending terms, fees and charges by the banks. Marcus believes that remains an issue and that it is damaging the potential for economic growth.

Commenting on the announcement and his concerns, Marcus said: “Whilst I welcomed the Chancellor’s announcement, I remain somewhat cautious about the existing practices of some banks who are essentially bullying businesses into agreeing a whole raft of changes, including new lending terms.

“I asked the Chancellor if he had discussed that issue with the banks during the process of coming to the new deal with the banks and I asked what the banks intend to do about it.

He added: “I was pleased to hear that the issue has been at the heart of the discussions and that a commitment to seeing an increase in lending to small and medium sized businesses. Of particular importance is the agreement that banks will need to treat their customers more fairly, be more transparent and will have to engage more with businesses before they take the drastic action of removing overdrafts. I hope this offers some level of assurances to local businesses that I am committed to ensuring that the new deal benefits them as much as possible as they are a huge factor in driving forward economic growth in the town and throughout the country.”