Lending to Small Businesses

Part of Oral Answers to Questions — Business, Innovation and Skills – in the House of Commons at 9:30 am on 18th July 2013.

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Photo of Toby Perkins Toby Perkins Shadow Minister (Business, Innovation and Skills) 9:30 am, 18th July 2013

Two years ago, there was a crisis in small business lending. We have just heard from the Secretary of State that in 22 of those 24 months, it has got worse. The Institute of Chartered Accountants in England and Wales is the latest to acknowledge that the Government response to the SME funding crisis is totally inadequate, using a British investment bank that funnels existing inadequate schemes through our uncompetitive banking system. Is it not time that the Secretary of State admitted that the Government will never deliver the scale of change needed and threw his weight behind Labour’s plan for a new generation of local banks with local decision making, based on the key features of the German Sparkasse model? Let us get the real change that British small businesses desperately need.