Access to Finance

Business, Energy and Industrial Strategy – in the House of Commons at 12:00 am on 31st January 2017.

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Photo of Chris Davies Chris Davies Conservative, Brecon and Radnorshire 12:00 am, 31st January 2017

What recent discussions he has had with the Chancellor of the Exchequer on improving access to finance for businesses.

Photo of Margot James Margot James Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

My right hon. Friend the Secretary of State has had discussions with the Chancellor on building the Government’s industrial strategy, which includes ensuring that businesses can access the finance they need. We already help businesses through the business finance and support finder on gov.uk, and we recently launched the finance platforms service, which offers small and medium-sized enterprises that have had finance rejected by the large banks the option of a referral to alternative finance providers.

Photo of Chris Davies Chris Davies Conservative, Brecon and Radnorshire

With many new online alternative finance companies springing up across the UK, what is my hon. Friend doing, first, to ensure that our small and medium-sized enterprises know about these alternative ways of accessing finance, and, secondly, to give them the confidence to borrow from such organisations?

Photo of Margot James Margot James Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

The British Business Bank has created the business finance guide, which is widely distributed and offers comprehensive information about the financing options available to businesses, including alternative sources of finance. The Financial Conduct Authority regulates peer-to-peer lending platforms and is currently reviewing its regulatory regime to ensure that it is robust and up to date.

Photo of David Hanson David Hanson Labour, Delyn

What assessment has the Minister made of the impact of bank closures in town centres on the availability of business finance, to ensure that those such as my local one in Holywell, which is potentially losing three banks this year, will still have access to business finance and will still be positive town centres?

Photo of Margot James Margot James Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

The impact of bank closures is, to some extent, ameliorated by the Post Office’s announcement a few weeks ago that it will be enabling both personal and SME banking customers to have a massive increase in face-to-face banking services across the country.