British Steel
Debate between Lord Sikka and Earl of Minto(1 year ago)
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The Earl of Minto (Con)
I thank my noble friend for that question. We generate just over £11 million-worth of ferrous scrap each year, of which about £8 million-worth is exported.
Lord Sikka (Lab)
My Lords, I hope that the Minister can clarify a policy issue here. The Government are handing billions of pounds to steel, railway, broadband, car makers and others. Why do they not take an equity stake in those businesses? That way, the businesses still get the money and the public has some kind of asset. Should the business then make a recovery, there would be a return.
The Earl of Minto (Con)
My Lords, that sounds to me rather like the thin end of the wedge. Any return to some form of nationalisation is not appropriate. We operate in a global market now, in all sorts of categories. We must allow the commercial viability of each individual market.
Small and Medium-sized Enterprises: Interest Rates
Debate between Lord Sikka and Earl of Minto(1 year, 2 months ago)
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The Earl of Minto (Con)
The noble Lord makes a very good point. Those are some of the largest international companies in the world, and I am sure that they will provide the Prime Minister with some extremely helpful advice. Having said that, as we all know, in this country the vast majority of businesses are small and medium-sized enterprises. In my role, I communicate with them almost constantly, both individuals and representative bodies. The value they have to add to these sorts of fora should not be underestimated. They are an extremely valuable and successful part of our economy.
Lord Sikka (Lab)
My Lords, there is evidence to show that the closure of bank branches leads to lower financial support for local businesses, especially as it also leads to the loss of local economic intelligence networks. What have the Government done to estimate the negative effects of bank branch closures on financial support available for SMEs?
The Earl of Minto (Con)
My Lords, it is an extremely good point. If one goes back to before the financial crisis in 2008, when the big five really dominated, there has been nothing short of a revolution in business lending since then. In fact, last year some 55% of all SME borrowing came from challenger banks—at-base banks and specialist SME banks such as OakNorth and Hampshire Trust Bank. The whole structure has changed in the last few years, and my guess is that some of the more traditional banks are feeling the pain in this area.