The Treasury has officially opened the Funding for Lending Scheme (FLS) which will enable businesses to grow and borrow money at a cheaper interest rate for up to four years.

The scheme will deliver economic growth and increase infrastructure investment to the UK which will create jobs for trade professionals including electricians, plumbers and gas engineers.

Commenting on the FLS Chancellor George Osborne said that the scheme will provide lasting benefits for thousands of people in Britain and boost the economy.

Mr Osborne said: “Today’s announcement aims to make mortgages and loans cheaper and more easily available, providing welcome support to businesses that want to expand and families aspiring to own their home.”

It is expected that banks currently offering loans through the National Loan Guarantee Scheme (NLGS) will continue to offer their NLGS branded product.

The Chancellor said: “The NLGS has made a real difference, with over 16,000 cheaper loans worth over £2.5bn already offered to businesses across the UK. In many cases, the money saved has meant an extra person employed who otherwise still might be looking for work.

“The more generous FLS has officially opened for business and will in time effectively take over from the NLGS, delivering credit easing to the whole economy.”

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The Government will enable businesses across Britain to access more and cheaper loans which will boost the economy and create new jobs, the BBC has reported.

Chancellor George Osborne announced the new £ 80 billion scheme, describing it as “a huge help for the British economy” which will give businesses the confidence to grow.

Under the Funding for Lending Scheme British banks will be able to lend money to businesses at a low interest rate, enabling the expansion of smaller businesses and the creation of new employment opportunities.

The Chancellor said: “Today’s announcement aims to make mortgages and loans cheaper and more easily available, providing welcome support to businesses that want to expand and families aspiring to own their home.”

Mr Osborne added the initiative would “inject new confidence into our financial system and support the flow of credit to where it is needed in the real economy – showing that we are not powerless to act in the face of the Eurozone debt storm”.

Welcoming the government’s announcement Director-General at the CBI, John Cridland, said: “This new scheme should provide a real incentive for banks and building societies to increase their lending to businesses and individuals, if possible at lower rates of interest.”

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