In the last few days the media has been obsessing over what chief whip Andrew Mitchell did or didn’t say to a police officer at the Downing Street gates, and have seemingly ignored Vince Cable’s plan to set up a £1bn business bank.
While details of the business bank won’t be known until December, when Chancellor George Osborne gives his autumn statement, it is understood that the bank will lend to small and medium sized companies struggling to secure funding from the banks.
Under Cable’s proposals the business bank will be set up within 18 months and it’s also hoped that private sector investors will match the initial £1bn pledged by the government.
Not only is this an excellent idea to try and kick-start the economy by lending to struggling smaller firms, it’s also a clear attempt to provide a long term solution and not look for a quick-fix.
I think we should be giving more attention to this as it’s a serious attempt at structural financial reform, and not spend days on end continually focusing on whether Andrew Mitchell should or shouldn't resign.
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