Limited company contractors will be interested to hear that the Government is set to launch a business bank, which could support as much as £10 billion of new lending to small businesses.
The Business Secretary, Vince Cable, has made the announcement that the Government is taking the ‘first steps’ for the new bank, which will centralise the Government’s financial support for small businesses, such as limited companies, in a single place.
Further details will come to light later on in the year, as the scheme is still in the early stages, however, the new bank will not replace traditional banks; the overall aim is make it easier for small businesses is to gain access to finance.
Vince Cable said, “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.
“Having a functioning, diverse supply of finance is an integral part of the Government’s industrial strategy. It is all about making the right decisions now to secure our long-term industrial success.”
The Federation of Small Businesses welcomes the launch of the Government-backed ‘small business bank’, as John Walker, National Chairman, Federation of Small Businesses, explains, “The ‘small business bank’ is a good thing – we’ve been calling for this for a long time and we are delighted to see it finally get off the ground. The FSB has carried out significant research assessing similar models in the US and Europe.
“FSB believes the new ‘small business bank’ will stimulate competition among the high street banks, in particular the so called ‘Big 5’.
“We are certain it will help boost confidence and deliver growth.”