However, UK Finance’s business finance update for November 2018 revealed that lending to manufacturing companies grew by 7% during the same period.

The update found that £262.3bn was lent to non-financial businesses by high street banks over the period.

Deposits held by non-financial UK companies were up 1.6%, with growth in transport, recreational services and electricity, gas and water utilities.

•   68% of brokers believe that base rate rises have had no impact on business
•   UK business borrowing contracts by 1.9%
•   UK online alternative finance market grows 35%

Stephen Pegge, managing director of commercial finance at UK Finance, said that overall lending to businesses had remained subdued in this period of economic uncertainty, with a slight contraction from [November 2017].

“However, lending to manufacturing, transport and service industries have all seen strong annual increases.

“Business deposits have continued to grow, with transport and personal services in particular showing a large increase, further indicating a cautious approach by businesses to trading conditions.”