Oral Answers to Questions

Debate between Lord Willetts and Graham P Jones

Thursday 6th September 2012 Commons Chamber

[Graham Jones (Hyndburn) (Lab)]

5. What support his Department is providing to start-up businesses expanding in developing areas of industry.

[The Minister for Universities and Science (Mr David Willetts)]

We aim to make the UK the best place in the world to start and run a business. That is why we are reintroducing the Smart awards for innovative new businesses, creating 24 new enterprise zones and committing a further £200 million to enterprise capital funds.

[Graham Jones]

CN Creative in Accrington in my constituency is a growing company that designs and manufactures the best electronic cigarettes in the world. It is planning to move its entire production from China back to the UK, to my constituency, but the banks will not lend it the money it needs, which is preventing the move and jobs coming to Britain. Does the Minister realise how damaging it is to start-up companies when they cannot access credit?

[Mr Willetts]

We agree; it is very important that banks are encouraged to lend to successful businesses. That is what the coalition is doing. Incidentally, the old pessimism that manufacturing will always go east is clearly now being reversed. We are optimistic about the prospects of manufacturing in this country.