Vince Cable’s British Business Bank is the wrong solution to a serious problem.
Vince Cable’s British Business Bank is the wrong solution to a serious problem, is the message from the Green Party’s new leader, Natalie Bennett, who says that the Business Secretary must do more to ensure viable firms receive the support they need in the harsh economic climate created by the Coalition.
Mr Cable today announced plans for a new British Business Bank, backed by public money, to provide companies too small to raise funds from capital and equity markets with cash to invest in expansion.
He said the bank would shake up the business finance market and lift a ‘block’ on growth caused by finance shortages by increasing lending to UK firms.
The Green Party welcomes Mr Cable’s admission that the banking industry must change, but is not satisfied his plans can deliver what he hopes – and British business needs.
Natalie Bennett, Green Party leader, comments;
“Mr Cable is right to identify as a key problem the failure of our existing giant banks to meet what should be their basic role – the provision of credit for viable businesses in the real economy.
“But he’s wrong about the way forward – even assuming that George Osborne will let him deliver what he’s proposed today.
“The taxpayer already owns 84% of RBS, and the sensible measure would be to completely nationalise it, then break it up into a series of small local banks operated under democratic control.
“We need to return to local banking, and to support the development of credit unions and mutually owned financial institutions.
“A local bank lending to local businesses will be in far better position to understand the local business conditions, and make sensible decisions based on those, rather than a national algorithm generated by a distant head office.”