Oral Answers to Questions

Debate between David Amess and Vince Cable

Thursday 20th December 2012 Commons Chamber

[Mr David Amess (Southend West) (Con)]

5. What recent progress he has made on the establishment of a business bank.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

The statement I have laid before the House today details recent progress, including the appointment of individuals to chair the bank’s advisory group and lead work on the institution’s design. Good progress is also being made on designing the bank’s interventions. To that end, my officials have been engaging closely with challenger banks, non-bank lenders, the main high street banks, financial advisory firms and financial services representative bodies.

[Mr Amess]

Although I welcome the Chancellor’s commitment to funding the business bank quickly, in contrast to the 13 years of boom and bust under the last rotten Labour Government, will the Secretary of State reassure me that this measure, together with others, such as lending funds to businesses, will do much to reassure local businesses, given the challenges they currently face?

[Vince Cable]

Of course I recognise that the borrowing position for many small companies dealing with the banks remains difficult. The evidence suggests that the funding-for-lending scheme that the Chancellor introduced is having a significant impact, and the British business bank will significantly improve the level of finance available to British businesses, especially SMEs.