The chief secretary to the Treasury, Danny Alexander, has confirmed that plans for a British Business Bank will be fast tracked, following reports that the £1 billion state-backed institution may not take effect until 2014.
Speaking at the Liberal Democrat Conference in Brighton, Mr Alexander said:
"Just as in defence procurement, we have Urgent Operational Requirements, I see this Business Bank as an 'Urgent Growth Requirement' and it will be fast tracked."
The plans for a £1 billion single institution were revealed yesterday by the business secretary Vince Cable.
The Government believes that the bank will kick start lending to struggling UK businesses by providing up to £10 billion worth of credit. Funding for the bank will come from existing Government budgets and will not require additional borrowing.
Think tanks and economists have criticised Mr Cable's plans and believe that at least £40 billion is required to ensure the bank is a success.
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