Business bank on the cards for Britain
British business minister Vince Cable has launched plans to inject £1 billion ($1.6 billion) into a new business bank in a bid to cut borrowing costs for firms. Cable announced the initiative at the annual conference of junior coalition partners, the Liberal Democrats, reported Finance24.
“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,” Cable said at the conference in Brighton on the coast of southeast England. “Alongside the private sector, the bank will get the market lending to manufacturers, exporters and growth companies that so desperately need support.”
Cable says the new wholesale bank will open up about £10 billion ($16 billion) of finance for small and medium-sized British companies that are struggling to get access to credit. The new bank will lend the cash via existing financial institutions and start within 12 to 18 months. It will be funded from existing budgets and not require any additional state borrowing. The Conservative-led government hopes that it will attract more than £1 billion of capital from the private sector.