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£20bn boost for small firms
Robert Lea and Nicholas Cecil14 Jan 2009
LORD Mandelson today promised a £20billion shot-in-the-arm for smaller businesses.
The Business Secretary committed the Government to guarantee up to half of the sum, which will be made available by banks to entrepreneurs.
He also committed £50million to a fund which would see the Government taking stakes in small companies to help fund their development.
"This is about sustaining the credit lines which many businesses think are in danger," said Lord Mandelson.
David Frost, of the British Chambers of Commerce, however warned: "We've got to be careful we don't see getting more lending through to companies as being a panacea for all of the problems we have got at the moment."
The Prime Minister today drafted Mervyn Davies, chairman of Standard Chartered bank, into the Government to help tackle the economic crisis.
He is being made a peer and trade minister to replace former CBI chief Lord Jones.
Mr Davies played a key role in the Government's original bank bailout and is expected to take on a role as a banking minister.
Reader views (1)
"This is about sustaining the credit lines which many businesses think are in danger," said Lord Mandelson. Which is what David Cameron has been suggesting the Government did for months. So when Gordon says at PMQ's the "nobody is copying Tory economic policy" in what way precisely is this different - apart from the fact that the tories wouldn't have wasted £12bn on a ridiculous VAT cut but used the money to fund the Loan guarantee Scheme.
- Malcolm, London, 14/01/2009 14:01
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