PAC Report Welcome, but Business Bank Plans not Ambitious enough says BCC

23rd January 2014

Commenting on the report by the Public Accounts Committee (PAC) entitled Improving access to finance for small and medium-sized enterprises published today (Tuesday), John Longworth, Director General of the British Chambers of Commerce said:   -There is much to agree with in the PAC report, particularly the need for clearer communication with the business community and a more coherent approach to publicly-backed access to finance institutions.

However, our belief remains that the model for a business bank needs to be developed beyond the government's current plans so that it is customer-facing, better capitalised from the outset, and has the ability to lend directly to businesses. We appreciate the committee's recommendations for the new institution to respond to changes in the economy, but it is important that any new institution has stability, much like our international competitors that have enjoyed stable, publicly-backed banking facilities for decades.