Small Businesses: Finance

Lord Martin of Springburn Excerpts

Thursday 26th January 2012 Lords Chamber

[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.

[Lord Martin of Springburn]

My Lords, it is deeply worrying when stories come from self-employed businesspeople running small companies—sometimes one-man companies—that the banks give verbal assurances that they will give them finance, but several weeks later when they come to sign up the banks withdraw the assurances. That is cruel and hard, and I hope that the Government will be able to do something about it.

[Baroness Wilcox]

We are of course very aware that very often it is difficult for small businesses to make their case. They do not have the mechanisms that large companies have and are not sure how to go and speak to the banks. The banks assure us that they are working very hard to help people, particularly self-employed people, who come to make a business case. Of course, they have to make a business case because it is other people's money that they are borrowing.