Business welcome for Clegg's 'government bank' proposal

by Stephen Tall on November 20, 2008

Nick Clegg’s proposal yesterday for the government to lend directly to companies through the Post Office, local authorities or even by creating an entirely new bank triggered a vigorous debate here on Lib Dem Voice.

One group which has given it a very warm welcome is the Federation of Small Businesses – witness this report from myfinances.co.uk:

Spokesperson for the Federation of Small Businesses (FSB), Stephen Alambritis, said: “We support the intervention of the Liberal Democrats leader. The banks are not coming up with the goods despite the bank recapitalisation. We agree small businesses should have more alternatives.”

The FSB said it has proposed its own plan on ensuring small firms have access to credit through Regional Development Agencies but said funds made available through local authorities or the Post Office would also be acceptable.

“It is important small businesses have money,” Mr Alambritis warned. “They are not getting it from their banks.”