Oral Answers to Questions

Toby Perkins Excerpts

Thursday 20th December 2012 Commons Chamber

[Vince Cable]

I will certainly ensure that the hon. Lady and her constituent get good advice on the range of opportunities available to them. This is somewhat removed from the immediate concerns in establishing the bank, but she legitimately raises an important issue; many small companies cannot get credit.

[Toby Perkins (Chesterfield) (Lab)]

The small business bank provides the last chance for this Government to take meaningful action that could ensure the vital flow of cash to Britain’s small businesses. The reality among the small businesses that I speak to is that they do not have any of the confidence that the Secretary of State seems to be exuding about the access to finance that is out there. There is a worrying lack of urgency and clarity about the Government’s plans. Will he publish a timetable for the establishment of the business bank and update us on progress with all the main elements that will need to be in place, such as when it will apply for a banking licence, when lending will begin, and when state aid approval will be sought?

[Vince Cable]

There is certainly no complacency. We recognise that there is a very serious problem that ultimately resulted from the collapse of the banks in 2008-09, which has had devastating long-term consequences, and we are seeking to address that with a variety of interventions. There are positive things, including the emergence of challenger banks. When the advisory group meets early in the new year we will set out a detailed plan of action, including dates and objectives. I am happy to brief Labour Members when we have concrete detail.