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Plans for business bank get go ahead

Category: Scotland Business News — Mark on September 17, 2012

Business Secretary Vince Cable has confirmed that plans to launch a ‘business bank’ are moving ahead, though the exact details of its form and function have yet to be announced.

It is hoped that once up and running, the bank will invigorate lending throughout the UK.

The government-backed initiative will directly lend to some firms meeting as yet unconfirmed criteria. However, on a wider scale, it is hoped that overall access to commercial finance in Scotland and the whole country will be boosted by the move.

While exact details are still to be finalised, in his speech Cable suggested that the venture would work with such banks as the Co-Op.

Speculation in the press has also suggested the bank could ultimately be used to amalgamate the existing suite of government sponsored company schemes, such as Funding for Lending and the Enterprise Finance Guarantee scheme.

The speech also contained indications of the likely business sectors that would see investment from the new bank. Cable said the Government would refocus its efforts to support key economic areas such as the sciences and the car industry.

There has not been much backing for the plan though, with it receiving condemnation from many areas. For example, many opinions canvassed by the BBC have lamented the fact that the widely publicly owned banks should be fulfilling such a role.

The move was also criticised by Shadow Chancellor Ed Balls, who said the bank would not make any difference to the economic success of the country.
Plans for business bank get go ahead

Business Secretary Vince Cable has confirmed that plans to launch a ‘business bank’ are moving ahead, though the exact details of its form and function have yet to be announced.

It is hoped that once up and running, the bank will invigorate lending throughout the UK.

The government-backed initiative will directly lend to some firms meeting as yet unconfirmed criteria. However, on a wider scale, it is hoped that overall access to commercial finance in Scotland and the whole country will be boosted by the move.

While exact details are still to be finalised, in his speech Cable suggested that the venture would work with such banks as the Co-Op.

Speculation in the press has also suggested the bank could ultimately be used to amalgamate the existing suite of government sponsored company schemes, such as Funding for Lending and the Enterprise Finance Guarantee scheme.

The speech also contained indications of the likely business sectors that would see investment from the new bank. Cable said the Government would refocus its efforts to support key economic areas such as the sciences and the car industry.

There has not been much backing for the plan though, with it receiving condemnation from many areas. For example, many opinions canvassed by the BBC have lamented the fact that the widely publicly owned banks should be fulfilling such a role.

The move was also criticised by Shadow Chancellor Ed Balls, who said the bank would not make any difference to the economic success of the country.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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