A leading business figure, who will be speaking in Warwickshire this month, has welcomed plans for a new state-backed business bank.
Dr Adam Marshall, director of policy and external affairs at the British Chambers of Commerce (BCC), will be hosting the Coventry and Warwickshire Chamber of Commerce’s annual conference at Stoneleigh Park on September 21.
Marshall has led the BCC’s campaign for the introduction of state-backed business bank to help improve the flow of credit to small and medium sized firms in the long term.
And that has led to both Chancellor George Osborne and Business Secretary Vince Cable to announce that their departments are now ‘considering’ it as an option.
Marshall, who has just drafted a report on the creation of a business bank, said: “We have repeatedly urged ministers to take the bold step to establish a British business bank, which could help kick-start growth and jobs in the UK for decades to come.
“So we are pleased that the Chancellor and the Business Secretary, as well as the opposition, are now examining the case for the creation of a state-backed business bank.
“The BCC’s proposal envisages a wholly-new British business bank, rather than the conversion of any existing financial institution owned by the taxpayer.
“Banks in full or partial state ownership as a result of the financial crisis should be returned to the private sector when the investment delivers an appropriate return for the taxpayer.
“Our new report addresses many of the obstacles to the creation of a business bank, and shows that a new institution is both realistic and achievable.
“Ministers have a golden opportunity to pass enabling legislation for a business bank this autumn, and to dedicate their attention to ensuring that it is operational before the end of this Parliament.
“A business bank isn’t the answer to economic stagnation in the short-term, and the government must be careful to get the set-up right the first time.
“But a business bank would be able to help prevent a repeat of the financing difficulties faced by many companies since the credit crunch. What’s more, a business bank could help many new and fast-growing companies become the UK’s future champions.”
Chamber chief executive Louise Bennett said: “This is a great example of how the Chamber can make a difference. We have passed on the concerns of our members to the BCC and that could result in a very real and tangible solution to the problems surrounding access to finance.”