According to the latest figures released, the net lending to small businesses fell in the previous year even as the authorities worked to boost lending in the UK.

Official figures confirmed on Monday that banks lent lesser amount of funds to small firms in the previous year even as the Bank of England and the UK Treasury offered incentive to the banks to increase lending to small firms in the country. The data showed that banks taking part in the Funding for Lending Scheme took £18.7 billion of affordable loans in the fourth quarter of 2013. The banks created £5.8 billion in net new loans to households and businesses in quarter.

The banks have drew down £42 billion and have increased their net lending by £10 billion since the launch of the funding for lending scheme was launched 18 months earlier. The Bank of England and the Treasury had said that the first phase of the deal was successful. A Treasury spokesperson had said that the scheme is an important part of the strategy for the economic recovery in the country.

Paul Fisher, the Bank’s director of markets, said, “The FLS has been successful in meeting its initial objective to provide incentives to banks and building societies to boost their lending to the UK real economy”.