Labour leader Ed Miliband will today pledge to set up a system of government-funded regional banks to help small businesses across the country.

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Mr Miliband has already said his party would establish a British Investment Bank (BIB) and under his new pledge the institution would have a series of independent regional partners.

There could be up to 20 of the bodies around the UK that would be able to draw down funds from the BIB to lend at favourable rates, but only to firms in their region and not for profit.

It comes as the government is set to unveil plans to bolster its flagship Funding for Lending scheme by directing efforts at small businesses rather than mortgages in a bid to get banks and building societies to lend more.

Mr Miliband will say: “ We don’t just need a single investment bank serving the country. We need a regional banking system, serving each and every region of the country.

“Regional banks, with a mission to serve that region and that region alone. Not banks that like to say ‘no,’ but banks that know your region and your business. Not banks that you mistrust, but banks you can come to trust.

“I am committed to turning that idea into reality during the next government.”

A Labour source told the Eastern Daily Press that the exact model of the system had not yet been set in stone and would be subject to a consultation with business leaders which is about to begin.

However, he added that similar bodies existed elsewhere in the world; like community banks in the USA and Sparkassen in Germany, both of which were largely unaffected by the 2008 banking crash.

In the UK, the source said, it was likely that each regional bank would be run by a board possibly of local leaders, from councils or prominent firms perhaps.

Mr Miliband will also explain in his speech that his government would attempt to build a longer term culture in the way businesses are run.

He will say: “Part of that change of culture we need is to celebrate and nurture firms by addressing the short-term culture imposed on British business.

“We want to make it possible for British business to do more of what it is best at: invent, invest, train and prosper.”

3 comments

  • The concept is to be welcomed but NOT with local councilors ( politicians) within a mile of the operation!! Local businesmen, yes, amateur know-alls, no!!

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    Dictate

    Thursday, March 14, 2013

  • Unfortunately they have the freedom to speak rhetorical re-cycled powerless words.. they have no idea what they are saying, they just say what they think the people want to hear,. Alister C made a career as a 'babble fish' interface to the public voters. Tell them what they want to hear and cover up what we do or don't do or whatever 'we do' to increase our personal wealth whilst pretending to be listening to people: that is my opinion as shared by many.. they get millions from private exec sources so don't be fooled by the words, it is just words.. at higher political levels these people don't seem to be entirely honest about their motives...imo..

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    Dave01

    Friday, March 15, 2013

  • The milliband con brothers can say what they like it wont happen, they have already amassed millions between them in deals, eg. sunderland FC, UKplcltd already, so they are already well healed champagne socialists, they have no incentive to play with people any more.. it is only a game 'a front' for them just like slimy blair.. they made their beds already and take electorate as fools.. on pre-rehearsed lies and deceipt, it is all part of their game, and they love it... normal for politics....

    Report this comment

    Dave01

    Friday, March 15, 2013

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