A disturbing trend is picking up among UK firms, as they are requiring additional funding while mortgage approvals are dropping. For the first time since February, lending to firms increased during the month of August. The Bank of England released this data but also added, that it is indicated to be a short-lived practice.

The Bank of England monthly report also indicated a further slowing in the housing market, as mortgage approvals fell during the month of August. They are now at their lowest rate for major lenders since April of 2009.

UK policymakers remain concerned that the private sector is not adding positive growth to the recovery, but allowing slower movements within the government’s policies to shoulder the entire burden.

As of Wednesday, finance minister George Osborne announced more than 80 billion pounds of spending cuts to further challenge the UK economy recovery efforts.

The net monthly flow of lending to UK businesses increased 0.3 billion pounds in August. Whereas July saw a 2.5 billion pound decrease. This change left the annual rate of decline to ease to 5.4 per cent, its best reading since August 2009.

However, initial data is proving that the improvement in easing had not been sustained.

The Bank of England continued with its report, saying: "In recent discussions, some major lenders reported that businesses were continuing to pay down debt as they reduced leverage and improved working capital management."

"Data from the major UK lenders indicated that net lending to businesses weakened in September."