Small Businesses: Finance

Debate between Lord Forsyth of Drumlean and Baroness Wilcox

Thursday 26th January 2012 Lords Chamber

[Baroness Wilcox]

Right. I am very pleased that I was at Prayers this morning when the right reverend Prelate the Bishop of Manchester read so beautifully the prayer with the words, “the sea rageth”. Without doubt the sea rageth when it comes to money and getting growth going, but it is important that we keep the faith and keep a steady course. The things that I have read out so far are working. There is no doubt that we are lending money to small businesses and they are starting to do well.

[Lord Forsyth of Drumlean]

I congratulate my noble friend and the Chancellor on the initiative that he has taken to allow people who are starting up businesses to obtain support under the enterprise allowance scheme from near relatives, which, for most people starting a business, is the main source of finance. May I respectfully suggest that what we need in this country is not more debt in businesses but more equity, so the Chancellor’s emphasis on this is really very important and worth while?

[Baroness Wilcox]

Of course, I agree with my noble friend. It is a great asset to allow families to support new businesses. I have no doubt that in the next few weeks when the Budget comes to us, we will hear the Chancellor emphasise again the points that my noble friend made so well.

Economy: Growth

Debate between Lord Forsyth of Drumlean and Baroness Wilcox

Tuesday 11th October 2011 Lords Chamber

[Lord Forsyth of Drumlean]

My Lords, is not the truth of the matter that it is extremely difficult to get growth in a situation where half the national income is being spent by the Government and the national debt has been doubled in every Parliament? That is the inheritance which this Government have been handed. Has my noble friend seen the ideas put forward by Sir Brian Souter, who started with nothing but a loan from a parent, and who has built a major business in our country? He suggests that the enterprise allowance scheme should be extended so that loans that are provided by relatives are eligible for the scheme. As almost anyone who starts a business knows, it is very hard to get money other than from a relative, and yet they are excluded from the scheme. Is this not an idea that could actually make a difference?

[Baroness Wilcox]

I am very interested to hear what my noble friend has said. We are looking at all sorts of ideas to start bringing us forward. As you say, Brian Souter would have said, “Get on your bus”, not, “Get on your bike”.