Oral Answers to Questions

Christopher Pincher Excerpts

Thursday 6th September 2012 Commons Chamber

[Matthew Hancock]

I look forward to reading that letter, but I would say this: the budget for community learning has been protected in difficult fiscal times, and that shows the Government’s intentions in this area.

[Christopher Pincher (Tamworth) (Con)]

13. What recent progress he has made in supporting small and medium-sized businesses.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

20. What recent steps he has taken to support small and medium-sized businesses.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

In total, 450,000 new businesses were registered last year compared with 360,000 in 2009-10. We have cut corporation tax rates to an all-time low, we continue to cut red tape, we are incentivising bank lending, and we have a range of other schemes to support high-growth businesses in particular.

[Christopher Pincher]

I welcome my hon. Friend to his post and I welcome his answer. One of the concerns that SMEs in my constituency have is that, whereas previously they had access to overdraft extensions, which represent cheap credit, banks now insist on collateralised loans, which are repayable over a term at a rate over base, which represents more expensive credit. Will the Government’s innovative reforms result in not just an extension of credit, but a reduction in its price?

[Michael Fallon]

I am grateful to my hon. Friend. He is exactly right: cheaper credit is the key for many small companies. The whole aim of the funding for lending scheme is to ensure that banks pass on the reduction in the cost of the money that they themselves are accessing. The Bank of England will monitor that, but my Department will check that each bank continues to do it.