The Secretary of State for Business, Innovation and Skills (Vince Cable)
I would like to update the House on progress made to set up a new British business bank to support the provision of finance to small and medium-sized firms in the UK.
Inadequate access to finance remains one of the biggest risks to the UK’s economic recovery. The business bank will manage £3.9 billion of Government resources and bring together management, budgets, spending authorities and the power to alter or create new schemes into one place.
I announced in December the formation of an advisory group, led by Sir Peter Burt, former chief executive of the Bank of Scotland, which would advise Government in the design phase of establishing the business bank. Under Sir Peter’s leadership, the group has made rapid progress. Their recommendations cover the following issues:
Coverage of the business bank’s activities;
Role of wider business advice and the links to the business bank;
Corporate form of the business bank;
Performance measures;
Building on the existing capacities in Government and its agency;
Resource allocation;
Risk management systems;
Use of evidence;
Leadership including the recruitment of the chair.
I warmly welcome the group’s advice and have today begun the recruitment of the chair and senior independent director for the British business bank. They will have the unique opportunity to bring together the wide range of finance interventions that will help support the UK’s businesses and economic recovery.
I would also note that the business bank investment programme launched on 10 April has received a number of applications for funding. I hope to be able to announce the first investments in the autumn.
The advisory’s group signed recommendations letter and overview paper will be placed in the Libraries of both Houses.