Business secretary Vince Cable has told banks that they must start lending to small companies or they will face government action, in a move that could benefit firms that want to rent serviced offices.

He warned that if establishments prioritised bonuses and dividends over reinvestment, their profits would be heavily taxed under a new green paper entitled Financing a Private Sector Economy.

As a result, businesses looking for office space to rent may find it easier to secure a loan.

According to the Forum of Private Business' (FPB) Economy Watch survey for July, loan facilities for the 358 members of the panel declined by £66,000 in the past month and overdrafts have fallen by £34,500.

Fifteen per cent of respondents said their access to finance has improved, while 67 per cent have seen no change.

Some of the businesses surveyed reported overdraft reductions of more than 50 per cent, while others had theirs cancelled completely.

Matt Goodman, head of policy at FPB, said: "Contrary to what some of the banks are saying, some firms are still not able to access the finance they need and both business growth and economic recovery is under threat as a result."