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Experts have expressed hope that the £400bn government bailout will ease the print industry's access to bank loans and other capital.

On Wednesday 8 October, Alistair Darling announced that a rescue package totalling a potential £400bn would be offered to the UK’s ailing banking sector in an attempt to kick start lending and put the economy back on an even keel.

Nicholas Mockett, print specialist at private equity house Europa Partners, said the bailout could herald a “new dawn” for the UK economy, but added that it was not clear when it would break.

“Eventually, there will be increased liquidity in the markets, which will mean debt will start to flow again and printers will have greater access to capital than has been the case this summer.”

However, he added that the likely result of the current economic turmoil was recession, despite the bailout.

David Bunker, a director at Close Print Finance, said that, despite the bailout, there will be tighter restrictions on lending and banks will be more risk averse than they were 18 months ago.

The Federation of Small Businesses (FSB) said the part-nationalisation of the banks was the “ideal opportunity for the government to enter into a constructive dialogue with the banks about commercial practices and charges to small
businesses”.

FSB national chairman John Wright said: “[The bailout] should be coupled with assurances that more money will be made available to small businesses to help sustain them and get them through the next year.”

This was echoed by a printer who said that access to funding was the most pressing need in the current economic climate.

“As a cyclical industry, we need to borrow at times to get us through the quieter periods. I think there will be a lot more fatalities if the loan markets are not sorted out pretty quickly.”

Bailout factfile

• Up to £50bn of capital for banks
• Extra £100bn in short-term loans
• £250bn offered in loan guarantees
• Banks forced to boost capital ratios
• Widespread take-up from most UK banks anticipated