The CBI Director-General, Richard Lambert, today commented on the Bank of England’s latest Credit Conditions Survey and the need for measures to restore credit flows across the economy, including the car industry. It’s long overdue, but action is needed.

His comments follow calls for measures from the government to tackle the shortage of credit flow as a matter of utmost urgency.

Mr Lambert was quoted as saying: “The Bank of England’s latest Credit Conditions Survey paints a bleak picture of the impact of the credit crunch on businesses and families. The availability and the cost of credit have both deteriorated in the final quarter of 2008, and are expected to get worse in the next three months. The Government is going to have to do more to restore credit flows across the economy.”

Inventories and capital spending is way down and the overall state of the business economy in the UK has been sagging badly for a number of months, but its finally reached the breaking point and something must be done. It’s good to see a force like the CBI stand up and voice its concern.