Oral Answers to Questions

Debate between Gordon Banks and Greg Clark

Thursday 8th December 2011 Commons Chamber

[Greg Clark]

It would be a delight to visit Malvern. I know that my hon. Friend is trying—successfully, given the number of high-tech businesses there—to market Malvern as a cyber-valley. We know that silicon valley has prospered because of the links between existing high-tech firms and new ones, and I know that that is what she wants to achieve.

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

What guarantees can the Minister provide that the banks will actually lend to newly formed businesses run by previously unemployed people? They are not lending to existing businesses, so why should they lend to new ones?

[Greg Clark]

As the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), said earlier, the intention is—and the banks are delivering on this—that they increase lending to small businesses year on year. That is part of the loan guarantee scheme announced in the autumn statement, and we are determined to deliver on it.