Labour promises to help SMEs with British Investment Bank » SMEInsider

Labour promises to help SMEs with British Investment Bank

Labour plan to invest £1bn into a brand new investment bank aimed at helping small businesses.

Ed Miliband aims to create more competition in the British banking system, so the British Investment Bank (BIB) would provide small businesses with new funding. According to The Case for a British Investment Bank: A Report for Labour’s Policy Review, the Independent commission on banking identified that the largest four banks account for 85% of SME current accounts.

Labour aren’t the only political party pledging to create a BIB. Vince Cable and the Liberal Democrats plan to ‘‘expand the British Business Bank to perform a more central role in the economy, tackling the shortage of equity capital for growing firms and providing long-term capital for medium-sized businesses.’’

‘‘The next Labour government will build on the existing Business Bank to establish a proper British Investment Bank, with greater resources and ambition to improve access to finance for small and medium-sized businesses,’’ said Toby Perkins Labour’s shadow small business minister.