Small and Medium-Sized Enterprises: Funding

Lord Cotter Excerpts

Tuesday 25th June 2013 Lords Chamber

[Lord Popat]

My noble friend makes a very important point and I agree with him. In fact, when I was at an SME 20 years ago I had direct contact with my branch manager, and it was the manager who did the lending. Now, most banks have corporate offices and half the decisions are made on their computers rather than by human brains. I agree with my noble friend, but the good news is that we have set up competition within the banking sector and that the new banks—Shawbrook, Aldermore, Metro and Cambridge & Counties—all have branches with branch managers now.

[Lord Cotter]

My Lords, this point may have been made already, but it is worth making again. Does the Minister not accept that many small businesses do not know how to get different sources of funding, as there are so many that are potentially available? Specifically, what is being done proactively to let businesses know what is available out there for them to tap into? I know from running my own small business that you have very little time indeed when you are running it and trying to survive in this day and age; you do not have time to do this work. Are local enterprise partnerships and others doing this to help?

[Lord Popat]

My Lords, we are launching a tailored marketing communication campaign to increase awareness of a number of government lending schemes available to SMEs.