Oral Answers to Questions

Jason McCartney Excerpts

Thursday 14th October 2010 Commons Chamber

[Jake Berry (Rossendale and Darwen) (Con)]

9. What recent representations he has received on access to finance for small businesses.

[Jason McCartney (Colne Valley) (Con)]

15. What recent representations he has received on access to finance for small businesses.

[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.

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[Mr Prisk]

My hon. Friend is right to raise that issue, which he has discussed with me in the past. This is a particularly acute problem for those in the construction sector. We have sought assurances from the principal insurers in this area that they have now put in place for the coming year a sufficient risk capability, and they have given us those assurances. As with the banks, we will be closely scrutinising this to ensure that what they have said they have done is implemented in the coming months.

[Jason McCartney]

I echo my hon. Friends in pointing out that one of the biggest issues that I am facing in my constituency is the lack of lending to small and medium-sized businesses. In addition, Lloyds TSB has announced in the past month that it is closing the only branch in a market town called Meltham. In stressing to the banks that they need to get lending, will the Minister also stress that they need to start serving our communities?

[Mr Prisk]

This is something that we have raised with the banks. On Monday, however, I want to go further—that is when we will convene our new small business economic forum with the express intention of bringing Government, businesses and the banks together so that we can deal with these issues and start to ensure that credit is available for all businesses, large and small.

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[Vince Cable]

I am always happy to meet Opposition Members who have local difficulties with local companies; I have already done so and I am happy to talk to the hon. Gentleman about this. I do not know the details of the case, and I have to say at the outset that we are not in a position to make available large amounts of public money, but if we can help in other ways, we will.

[Jason McCartney (Colne Valley) (Con)]

T9. Will the Minister confirm his commitment to ensuring that the nation has the right kind of skills for a sustainable economic recovery by supporting ambitious young people and adults such as those studying at Kirklees college to improve their education and skills in further education?

[Mr Hayes]

Yes, I do indeed recognise the excellent work of our colleges. That is why we want to give them more freedom, more discretion and more power to respond to the needs of learners and local businesses. We have begun to do that during our time in government, and I should like to draw the House’s attention to today’s written statement, which goes further along those lines.