Oral Answers to Questions

John Stevenson Excerpts

Thursday 5th December 2013 Commons Chamber

[Vince Cable]

The right hon. Gentleman is right that there is a negative trend in net lending. It has been sustained and is worrying, although gross lending is now beginning to recover quite rapidly. The interventions of the business bank will do two things. They will support existing schemes—in fact the take-up under the guarantee schemes has risen by 85% over the last year since they came under the business bank—and they will provide new funding. He will know that, under agreements we have already reached, new debt funds have been supported, and those will find their way into support for small businesses in his and other constituencies.

[John Stevenson (Carlisle) (Con)]

In north Cumbria, we already have the very successful Cumberland building society. Does the Secretary of State agree that such societies should be supported and, most importantly, smaller financial organisations should not be overburdened by regulation?

[Vince Cable]

The hon. Gentleman is right that the building societies have a crucial role, primarily of course in mortgage lending, which is their traditional business, but some of them are moving into small business lending and that is very welcome. One of the reasons why the Chancellor and I did not support the recommendations of the parliamentary commission on leverage ratios was to protect building societies and enable them to expand.