by business editor Trevor Sturgess

tsturgess@thekmgroup.co.uk

Business chiefs have called for greater banking competition to help firms create jobs.

Speaking ahead of the publication on Monday of the report of the Vickers' Independent Commission on Banking, Jo James, chief executive of Kent Invicta Chamber of Commerce, representing firms in Ashford, Maidstone, Canterbury, Medway, North and West Kent, said smaller companies needed more financial support.

They were expected to create jobs to replace those lost in the public sector.

She said: "I believe they can do this, but to do so they will need the right support. I get constant feedback from business which suggests that one of the main barriers to SME expansion is the lack of financial support."

She was fully behind four leading business groups – the EEF, British Chambers of Commerce, the Federation of Small Businesses and the Institute of Directors – which have urged the government to increase competition in the banking sector.

They also want switching business accounts in the event of poor service to be easier.

In a letter, they write: "Greater competition would help to address one of the biggest concerns, the overall cost of credit, which includes SME complaints about the level of fees and conditions over and above the headline rate of lending offered by banks.

"Increased competition would also ensure that potential customers are presented with a real choice from a variety of offerings on lending rates, fees, covenant levels, conditions and service."