Small and Medium-Sized Enterprises

Lord Campbell-Savours Excerpts

Thursday 22nd November 2012 Lords Chamber

[Lord Marland]

Transparency in banking and increasing its scope and width by setting up new banks is absolutely fundamental to getting competitiveness into the banking system, which does not look very competitive at the moment. We have a range of schemes—I could go on forever. I will start with the enterprise capital fund, because it was started by the previous Government, which shows that all Governments are active. We have put another £200 million into it recently. We have the regional growth fund, with £1.4 billion, which will help small businesses in the regions, which I think is the noble Lord’s interest. There are many initiatives which I am happy to be questioned about.

[Lord Campbell-Savours]

My Lords, does the Minister accept that invoice discounting and factoring have a far greater part to play in funding small businesses, in particular in dealing with cash-flow problems?

[Lord Marland]

The noble Lord is absolutely right, but getting access to factoring is much more difficult. Obviously, it smoothes the cash flow that is so critical for businesses. The noble Lord shows a great deal of knowledge in that area.