Oral Answers to Questions

Nadhim Zahawi Excerpts

Tuesday 11th February 2014 Commons Chamber

[Greg Clark]

The hon. Gentleman knows that the funding for lending scheme, which the Government and the Bank of England have promoted, has explicitly concentrated on getting lending going to small businesses, but as my hon. Friend the Member for Bedford (Richard Fuller) said, bank lending is not the only source of finance needed. The venture capital funds established under our city deals are an important and welcome way in which small businesses can benefit from the finance they need to expand.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

2. What assessment he has made of how city deals are working.

[The Minister of State, Cabinet Office (Greg Clark)]

We have now agreed 19 city deals, and although they are for the long term, those in the first wave are already making a significant difference. For example, in Birmingham, more than 2,000 new apprenticeships have been provided. In Newcastle, infrastructure works are nearly complete on the Science Central development on what was previously derelict land. In Manchester, work will shortly begin on the airport relief road, and Liverpool is hosting the international business festival in June and July, which I know the hon. Member for Liverpool, West Derby (Stephen Twigg) will be supporting and to which I will ensure all colleagues receive an invitation.

[Nadhim Zahawi]

Will the Minister consider spreading the excellent city deal initiative to all parts of the country?

[Greg Clark]

I can confirm that there is in fact a city deal covering my hon. Friend’s constituency, the Coventry and Warwickshire city deal, which is focused on making the most of the opportunities in the supply chain for advanced manufacturing. Furthermore, through the available local growth funds, the principle of city deals is being established across the whole of England, and I am looking forward to visiting each LEP to conduct negotiations.