Banking on change?

Simon Danczuk, Rochdale MP

The Chamber played host to Shadow Business Minister, Iain Wright MP, and Rochdale MP, Simon Danczuk, on Monday as a group of Chamber members were quizzed on their views on proposals for a British Investment Bank.

The roundtable working lunch was the latest in a series of meetings held up and down the UK by the Labour Party, as part of the development process of its election manifesto.

The dozen Chamber members in attendance represented a good selection of businesses from across Greater Manchester and were initially asked about their views on their current experiences with banks. This was followed by a brief outline of proposals around a business focused investment bank for Britain designed to help shift the blockages to finance and help fund growth.

Director of Policy and Communication, Chris Fletcher said: “This was quite an important opportunity for those businesses in attendance to play a part in setting and influencing national policy ahead of the next election.

“It will come as no surprise that there is some dissatisfaction with current banking provision in the UK, but what isn’t clear is what the best solution is . It isn’t about simply piling cheap money into business, especially when proposals such as the Investment Bank are funded primarily by public money, but likewise, the current system does not seem to be working especially when propositions are being assessed that carry an element of risk.

“The scope and remit of a new British Investment Bank would be to deliver finance and funds to business that need it but who may be unable to access this through conventional means. This doesn’t just mean business with a poor credit record, but new businesses who are untested in the market but may be an outstanding long term prospect. One of the main questions to consider is whether this is in competition with or complimentary to existing banking offers.

“Whether these proposals ever become reality, only time will tell, but following the input from Chamber members they will at least be grounded in reality. The Shadow Minister left very impressed with the level and quality of input and the businesses at the meeting represented the business community in the best possible way with intelligent and insightful comments and discussion."