Oral Answers to Questions

Gordon Banks Excerpts

Thursday 9th June 2011 Commons Chamber

[Mr Prisk]

We have made important reforms to the EIS. The technical reform to which my hon. Friend has referred has been and continues to be examined, but no decisions have been made.

[Gordon Banks (Ochil and South Perthshire) (Lab)]

We have heard from the Secretary of State’s own mouth that Project Merlin has fallen at the first hurdle. We also now know that one of the promoters of the business growth fund, Santander, has withdrawn from the fund. What impact will that have on Project Merlin, on the business growth fund, and on growth and investment in the United Kingdom?

[Vince Cable]

The business growth fund is an extremely promising initiative, filling a gap in capital markets that has been left empty pretty much since the 1920s: the provision of equity for rapid growth mid-cap funds. The £2.5 billion fund is committed to by the main banks, and Santander wishes to pursue its own initiative, which is additional to the fund. The business growth fund is a great success. It was launched in Birmingham—I was there a few weeks ago—and it will achieve a lot for British industry.