Small Businesses: Finance
Debate between Lord Cotter and Lord Newby(9 years, 2 months ago)
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Lord Newby
That is why we have created the British Business Bank specifically to deal with these market failures. The bank aims to unlock £10 billion of new finance by 2017-18. On lending to small businesses, the noble Lord should be aware that gross lending has grown by 25% in the past year and by 41% over the past two years.
Lord Cotter (LD)
My Lords, recently the Business Minister wrote to the FTSE companies which are not signed up to the Prompt Payment Code. More than £39 billion is owed in overdue payments to SMEs, so this is a very important issue. Can the Minister tell us what progress has been made on encouraging the many FTSE companies which are not signed up to the code to do so and on ensuring that we carry on pursuing this matter? SMEs are saying that late payment of bills is the main bar to their growth.
Lord Newby
My Lords, I agree absolutely with my noble friend. We are looking at this in the context of the Small Business, Enterprise and Employment Bill and tightening up the speed with which the Government pay their bills. We will keep bearing down on businesses to make sure that they improve their performance in this area.