Oral Answers to Questions

Gordon Banks Excerpts

Thursday 14th October 2010 Commons Chamber

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

I do not believe that the Minister is really focusing his attention on the question. By his own Department’s definition, small enterprises are those with zero to 49 employees, and they have an average turnover of less than £3 million. How will the new business growth fund proposed yesterday by the British Bankers Association help those businesses, given that businesses will have to have a turnover of between £10 million and £100 million to apply and the average turnover of a small business is £3 million?

[Mr Prisk]

May I first welcome the hon. Gentleman to his position? Unfortunately, however, his first question confuses two matters. The growth fund is about investing equity into mid-cap businesses, as I described to the hon. Member for West Bromwich West (Mr Bailey). Micro-businesses, which are very important, are an entirely different animal. That is where bank lending is crucial, and that is what we are dealing with. We are particularly keen to ensure that there is a proper lending arrangement for micro-businesses, and we are talking to the banks about how we can get one, but Members should not confuse capital investment and bank lending. They are two different things.