Cable outlines plans for British business bank

The new bank is part of a long-term industrial strategy designed to give companies more confidence to invest and increase growth.

The business secretary said the bank will shake up the current business market finance and could operate through alternative providers such as Handelsbanken, the Co-Op and Aldermore.

However shadow chancellor Ed Balls on the same day said that the coaltion’s economic plan had failed and that it was time for change.

Speaking at the TUC conference, Mr Balls said that things would get worse for families if the government failed to change course.

“Living standards face the biggest squeeze since the 1920s, with prices rising faster than wages. Unemployment is high, with long term youth unemployment rising month by month”, he told delegates.

A ‘valuable’ first step

The detail of Mr Cable’s business bank have yet to be finalised, but Mr Cable also outlined plans for the creation of an innovation and knowledge centre in synthetic biology to help the sector develop commercial opportunities.

“Government needs to be more like business, by making strategic plans and sticking to them,” he said in a speech at London Imperial College. “Our first part of that plan is lifting the barrier that poor access to finance puts on growth, by helping firms to invest capital, businesses expand, and create jobs.

Government needs to be more like business, by making strategic plans and sticking to them. Vince Cable

“But I am also setting out a clear and ambitious vision, a commitment far beyond the usual political timescale that will continue to bear fruit decades later.”

The announcement was welcomed by the British business community. John Cridland, director general of the CBI, said today’s strategy was “a valuable first step” to providing a supportive environment for business.

“British business has been challenging the Government to put in place firm foundations on which our companies can build their long-term futures and rebalance our economy,” he said.

Long term damage

However on the same day, Mr Balls said that the long spell of slow growth, combined with high numbers out of work, was already leaving families and businesses “crying out” for change. Young people, he claimed, are especially at risk if long-term unemployment sets in.

“Not short term pain for long term gain, but short term pain causing long term damage, as we pay a long term price for this Government’s economic failure,” he said.

“That is why we need action now, a change of course and a plan for jobs and growth: investing in infrastructure, building new homes, and getting young people back to work.”