Oral Answers to Questions

Seema Malhotra Excerpts

Thursday 8th November 2012 Commons Chamber

[Michael Fallon]

Instructions to contracting authorities emphasise that the assessment of financial risk should be based on a business judgment, not on a purely mechanistic application of financial formulae such as value of turnover or three years’ accounts, which could unreasonably shut out start-up companies.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Small businesses are being held back from expanding and taking on extra workers because they are unable to get the finance they need. This week Dave Fishwick, also known as Bank of Dave, addressed a group of MPs about a model of community banking that has worked in his area. What more could the Government do, particularly given the failure of their Project Merlin scheme, to ensure access to finance and better relationship banking in communities such as mine?

[Michael Fallon]

I am not sure that we need lectures from a party that introduced six new regulations every working day during its 13 years in office. We have cut red tape and business tax. There is an issue with access to finance. That is why we have set up the business bank, the funding for lending scheme, and a range of other schemes. It is now up to the banks to rebuild their relationship networks to make businesses more aware of the appeals mechanism. We are encouraging the British Bankers Association to do that to make sure that the money that the Government and the taxpayer are providing gets through to the companies that need it.