Andrew Bridgen
Main Page: Andrew Bridgen (Independent - North West Leicestershire)Department Debates - View all Andrew Bridgen's debates with the Department for Education
(11 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Vince Cable
Yes, the decline of relationship banking has been a long-standing problem and it underlines the difficulties my hon. Friend describes. The factual position is that last year a third of all applications to the banks for loans were declined, according to SME Finance Monitor. When appeals were made to an independent arbitrator, some 40% were successful, which shows how bad the banks are in sifting good credit from bad.
Andrew Bridgen (North West Leicestershire) (Con)
Does my right hon. Friend agree that the new business bank is not the silver bullet solution for all firms’ financial needs? What is he doing to diversify the sources of finance for business, particularly SMEs?
Vince Cable
No, it certainly is not a silver bullet but it will make a significant difference in increasing diversity in the system, in providing wholesale financing for some of the new entrants into the market, and in making Government support more concentrated and easy to access. It will be an important contribution, and the plans are already under way. The expert committee met for the first time a couple of days ago, and we are already looking at products and projects that hopefully will provide some £300 million, geared substantially with private money, over the course of this year.