High street bank lending to small businesses increased by £153m in May, according to data released by the British Bankers' Association (BBA).

The BBA figures also reveal that deposits increased by £250m and over 45,000 new small business banking relationships were established in May.

"The small business sector saw another monthly increase in its borrowing from the high street banks in May, while reduced trading activities and greater control of liquidity were reflected in increased deposits and little-changed overdraft levels," said BBA stats director David Dooks.

However, many small firms that are still finding it difficult to access funding through their banks will view the figures with scepticism.