UK govt unveils plans for new state-backed bank

11 September 2012

The British government has unveiled its plan to create a new state-backed bank specifically to support businesses in their efforts to grow.

During a speech given at London's Imperial College today (11 September), business secretary Vince Cable revealed the administration is determined to begin a deeper working relationship with companies moving forward.

And part of this plan includes the establishment of a new financial institution, which will exist solely to help firms invest in capital and drive their expansion over the coming years.

While the finer details of this bank are still under discussion, it is thought it may operate through alternative providers such as non-banks and new challenger financiers in order to boost its lending capacity.

Mr Cable said the government needs to act more like businesses by "making strategic plans and sticking to them" as opposed to making decisions on an ad hoc basis.

"Our first part of that plan is lifting the barrier that poor access to finance puts on growth," he added.

By Tony Aynsley

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