The future of small and medium-sized businesses that have been affected by the recession may have been given new hope, after Labour MPs have called for the creation of a British Investment Bank.
Shadow Chancellor Ed Balls and Shadow Business Secretary Chuka Umunna have highlighted the urgent need for investment in the country’s small businesses, by proposing a government-backed bank to boost the country’s economy and provide much needed support and investment for small businesses.
Following a recent study, it has been shown that the UK is the only G8 member without a government-backed investment body to support the vital part of the country’s economy, which has stunted their growth.
‘The ideas, inventions and hard work of small businesses who build our economy are a vital component of growth. But too many of these small businesses are starved of the funding and investment they need’, Mr Balls stated in a speech earlier this week.
‘We believe that a proper British Investment Bank, designed to meet business’ needs would play a vital role in solving the small businesses funding problems in the UK’.
This has been an issue that has been raised in Parliament for months now, and it seems that it will continue to do so. Mr Balls has said that the party will work with businesses over the coming months in order to design a bank that will be most beneficial to those it is aimed at.