Although green shoots are now being sighted on a more regular basis, the future for the UK’s small and medium-sized businesses could not be more precarious. The difficulties in channelling bank lending to this vital sector are threatening the recovery and putting thousands of jobs at risk.

Britain’s banks still face significant challenges. According to Moody’s, the ratings agency, UK banks are expected to suffer further writedowns of £130bn-£250bn ($213bn-$409bn) over the next few years. Far from improving, the credit environment for smaller businesses is expected to worsen, threatening further growth.