Autumn Statement

Adrian Bailey Excerpts

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

I am glad that my right hon. Friend welcomes the decision to increase the A1 to motorway standard between the M25 and Newcastle. He makes a powerful point about the A1 north of Newcastle, and I can tell him that the Chief Secretary to the Treasury is also a powerful advocate of that road scheme. It is one of the things that the Department for Transport will look at as well, so it is certainly not off the cards. What I have committed to today is the dualling of the A1 up to motorway standard all the way to Newcastle.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The Chancellor has re-announced the creation of the business bank and the funding for it, which is welcome in itself. However, there is widespread incomprehension in the business community as to how that will facilitate lending to small and medium-sized enterprises. Will he take this opportunity to explain how the bank will fill in for small businesses in a way that the existing banking structure does not?

[Mr Osborne]

My right hon. Friend the Business Secretary will set out more detail about the business bank. What I have confirmed today is the £1 billion of additional capital. Our ambition is that this will help to lever in private sector capital as well. Through the business finance partnership, which is not included in this £1 billion, we have already undertaken work to get more non-bank financing to medium-sized companies in particular. We are looking at similar models for the business bank, and my right hon. Friend will make an announcement on that. We are also going to use the opportunity to bring together all the myriad schemes announced by various Governments on business finance, finance for SMEs and the like, which are sometimes confusing, so that the business community has just one place to go to. As I have said, I have announced £1 billion extra for the business bank.