Oral Answers to Questions

Andrew George Excerpts

Thursday 6th March 2014 Commons Chamber

[Mr Willetts]

This is not to do with the introduction of the fees and loans. As I said in answer to the previous question, the burden of repayment on graduates has fallen. The hon. Gentleman describes a trend that began under the previous Government. We believe it is attributable significantly to their policy of not funding students who already have an equivalent-level qualification. That is why I have started the process of reversing that by extending entitlements to loans to more part-time students, and we aim to continue to reverse the damage done by Labour’s policy.

[Andrew George (St Ives) (LD)]

17. What assessment he has made of the effects on businesses of banks’ lending practices.

[The Minister for Skills and Enterprise (Matthew Hancock)]

Banks’ lending practices—good or bad—can have an impact on the willingness of small businesses to approach their bank. We are alert to any evidence of poor practice, and we take up concerns both with the banks and, where necessary, with the financial services regulators.

[Andrew George]

While bankers are still happily filling their boots with multi-million pound bungs, thousands of small and medium-sized enterprises across this land are being sucked dry by those same banks. Regulators are offering only woefully limp regulation at the moment, so is it not now time for Ministers to step in to protect SMEs from these mis-sold interest rate hedging products?

[Matthew Hancock]

Of course, we have strengthened the regulation of the banking system enormously in the past three years. As yesterday’s figures from the Financial Conduct Authority show, 62% of businesses that might have been mis-sold interest rate swaps have now been told by the banks whether they are owed compensation under the scheme regulated by the FCA, and all businesses owed redress will have been made offers by the end of June.