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Vince Cable pledges £1bn for ‘business bank’

Vince Cable 480

The Government is to plough £1bn into the creation of a “business bank” to help firms that have struggled to access credit since the financial crisis.

The BBC reports business secretary Vince Cable will announce the plans to boost business lending at the Liberal Democrat conference in Brighton later today.

The bank will operate via existing lenders and start within 18 months. The Government hopes its investment will be boosted by the private sector.

Further details about where the Government funding is coming from will be announced as part of the autumn statement on 5 December.

The Government will offer both guarantees and equity as part of its business bank plans.

Cable will say: “We need a new British business bank with a clean balance sheet and an ability to expand lending rapidly to the manufacturers, exporters and high-growth companies that power our economy.

“Today I can announce we will have one. I am working with the Chancellor to develop a state-backed institution that will combine up to a billion pounds of new government capital with a larger private sector contribution.

“This will then apply further leverage through guarantees to support up to £10bn of finance to small and medium-sized enterprises and mid-sized business, a significant portion of all the lending available.”

Chancellor George Osborne first announced plans for a state-backed business bank earlier this month. The Institute for Public Policy Research has estimated that initial set-up costs for a state-backed business bank would run to £40bn.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. This is yet further proof of politician’s inability to use joined up thinking.

    So the Lib Dem politbureau want to help businesses. That’s fine. However people who run business don’t do it for charity. So as soon as they become successful this sad lot want to squeeze the initiative out of them by taxing even more heavily than at present. Idiots!

  2. Cable is very vocal in the need for creating a new funding facility, however what terms and conditions specifically will this facility operate under, what is the eligibility criteria and what percentage of UK private business could benefit given the relatively small fund available?. Bold talk with so little in real hard facts will remain only talk.

  3. the penny still hasn’t dropped; we’re paying too much VAT, too much Business Rates, all to support too much government and public sector – apart from the cost of paying MEP’s and other costs of being in Europe, we’re still paying for the 1 million public sector jobs handed out by New Labour; retailers can’t pass on these costs to customers and the rest of the private sectot struggles to compete.
    the reason most of the banks can’t lend is the circumstances of business markets and until you change those, pumping taxpayers money in won’t happen or won’t work.

  4. Another load of of PR rubbish. Does he think that by announcing this at the Lib Dem conference that people will vote for them. He is useless as Business Secretary and should be replaced

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