Business Bank far from open to business
Accountants are skeptical over the extent to which Vince Cable’s Business Bank will cure the drought in SME lending.
According to the Institute of Chartered Accountants in England and Wales (ICAEW) the bank it is unlikely to address the needs that SME’s have and the finance gaps that exist.
The ICAEW’s head of corporate finance, David Petrie, explains: “The proposals, as announced, amount to little more than a re-spray of the Capital for Enterprise scheme (CFE), based in Sheffield.
“Past measures to improve both awareness of CFE’s funds and the number and nature of businesses it invests in have failed. Perhaps that’s because it is neither in the City nor across the regions.
“The fact that these proposals also rely on obtaining EU State Aid Approval, which is anticipated in Autumn 2014, highlights how far off the Business Bank is from being open for business.”