Part of Oral Answers to Questions — Prime Minister – in the House of Commons at 11:30 am on 14th January 2009.

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Photo of Gordon Brown Gordon Brown The Prime Minister, Leader of the Labour Party 11:30 am, 14th January 2009

I have just explained that the Conservative scheme is completely unfunded, and the right hon. Gentleman had better look at what he would put up to help people in this difficult situation. As far as the banks are concerned, the £10 billion is working capital that will go to firms over the course of the next year. The business guarantee scheme is to help firms that want to convert their overdrafts into loans, or that need investment capital. We will buy shares in high-technology companies that have a viable future, so that they can transfer their debt into equity. These are the things that we can do practically. Since November, 20,000 firms have already benefited from the cash-flow promises that we made in the Budget that we would give deferral of taxation to people who were facing a need for working capital or for cash flow. So far from not taking action, 20,000 firms have already benefited.

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Ian Simcox
Posted on 16 Jan 2009 9:30 am (Report this annotation)

I don't recall reading anywhere how Labour plans to fund their scheme. Borrowing is only a way of securing the money to pay for the scheme - it does not fund it.