Oral Answers to Questions

Debate between James Morris and Mark Prisk

Thursday 14th October 2010 Commons Chamber

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

The Government believe that improving access to finance is vital for small businesses. In response to our formal consultation on access to credit, we received more than 170 representations, and we will respond to them shortly. In addition, yesterday the British Bankers Association published its taskforce report on business lending, which has 17 separate recommendations. The Government welcome the progress made by the taskforce to date.

[James Morris]

I thank the Minister for his answer. Many small businesses in my constituency and in the broader black country are still complaining about their inability to get capital to grow their businesses. Does he agree that this is now becoming a vital issue? Will he outline the steps that the Government are going to take to ensure that we get that capital into those businesses, which are absolutely vital to the future of the region and the areas that I represent in generating private sector jobs growth?

[Mr Prisk]

My hon. Friend is absolutely right. That is why, right away, within a month, we extended the enterprise finance guarantee by £200 million to help up to 2,000 more businesses. More than that, we have been actively pressing the banks to sort out the lending code, to deal with information so that it is more transparent, and to ensure that businesses have the opportunity to appeal. Yesterday, the taskforce reported back, and we will study its proposals. Let me make it clear, however, that as far as this Government are concerned, the real test now will be for the banks’ words to be matched by their actions.