Osborne's new bid to help SMEs The announcement will also be seen as a response to the GDP figures on Thursday, which are expected to show that the economy grew by 0.1pc in the first three months of this year, narrowly escaping a "triple-dip" recession. While the FLS is considered to have been a success in the mortgage market, where it has lowered borrowing costs for first-time buyers and improved credit, it has failed to have much impact on small businesses. Borrowing costs spiked for loans of less than £1m earlier this year and data from the Bank last week showed that demand declined "significantly" in the first quarter. In February, Vince Cable, the Business Secretary, asked the Bank to review the FLS to see how it could be "adapted to deal with the needs of SMEs." The Chancellor then revealed in the Budget that he was working with the Bank to improve the scheme. Speaking in Washington last week, Mr Osborne said there would be an announcement on the FLS "fairly shortly." He added: "It has been a success and has underpinned credit in the last year and has contributed to a reduction in bank funding costs." While small business lending is stalling, asset finance is growing. The Finance & Leasing Association, the industry trade body, said asset finance raised £21bn in 2011 and supported £12bn of investment by small and medium-sized businesses. The Asset Based Finance Association forecasts a 9pc increase this year to £18bn by its members, after a 6pc rise in 2012. But the industry is still a long way short of its pre- crisis level of about £30bn. The new arrangements for asset based lenders are unclear but are likely to differ from the 2012 deal for banks and building societies. Under the current scheme, lenders are eligible for taxpayer-backed funding subsidies on 5pc of their UK loan book. The idea was that the savings would be passed on to borrowers, providing households and businesses an extra stimulus to help the recovery. The arrangements for non-banks are likely to be on a larger proportion of the total £20bn of financing. Mark Carney, the incoming Bank of England Governor, revealed that "a number of central banks around the world are looking at [the FLS] and looking to emulate aspects of it." The forecast of 0.1pc growth for the UK in the first quarter was drawn from a poll of 51 economists by Reuters, suggesting they expect the country to have narrowly avoided a triple-dip recession. But others believe the economy is back in recession. Economists at Morgan Stanley expect GDP to have contracted by another 0.3pc, although they said it will be a "very close call" and that a "major decline" in the "volatile construction sector is the key downward driver."