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Initial plans of ‘business bank’ to be unveiled

Initial plans of ‘business bank’ to be unveiled

Category: Business

Updated: 24/09/2012
First Published: 24/09/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The business secretary, Vince Cable, is set to reveal the first of his plans later today for a new 'British Business Bank, designed to boost lending to UK businesses.

Under the plans, the Government intends to create a single institution funded by £1 billion of state-owned money, with the aim of providing up to £10 billion to struggling small and medium sized businesses.

The Government has assured sceptics that the funding will not require further borrowing and will come from existing budgets.

It is thought the finer details of the Government's plans won't be revealed until December's Autumn Statement.

In his speech, at the Liberal Democrat Conference, Mr Cable is expected to say:

"For decades British industry has lacked the sort of diverse, long-term finance that is quite normal elsewhere. We need a British business bank with a clean balance sheet and a mandate to expand lending rapidly and we are now going to get it.

"Alongside the private sector, the bank will get the market lending to manufacturers, exporters and growth companies that so desperately need support. It will be a lasting monument to our determination to reshape finance so it can finally serve industry the way it should.

"Its success will not be the scale of its own direct interventions but how far it shakes up the market in business finance and helps to ease constraints for high-growth firms."

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