Monday, 24 September 2012

New state investment bank a small and belated step in the right direction



Responding to plans announced today (Monday) by the Business Secretary for a new state investment bank, TUC General Secretary Brendan Barber (pictured, above) said:
"The new state investment bank should provide much needed support for businesses to grow and create jobs. It's a shame that so many businesses have gone to the wall in the two years it's taken the government to agree to the scheme.
"Ministers claim that a £1 billion investment could support £10 billion of business lending. But with the UK trapped in double dip recession, this is nowhere near enough to deal with the scale of our economic crisis.
"If this bank is as good as ministers claim it will be, they should give it the backing it deserves and vastly increase its funds. Multiplying the government's stake tenfold could support £100 billion of additional lending. This is the level of support businesses really need."

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