Plans for public-backed bank welcomed by Federation of Small Businesses

The Federation of Small Businesses has welcomed plans announced by the chancellor of the exchequer to create a public bank for the UK.

Speaking on the Andrew Marr Show on Sunday, George Osborne underlined the scheme, which aims to give growing companies access to government funding.

Ann Swain, West Sussex policy chairman for the Federation of Small Businesses, said: “I warmly welcome the announcement that the Chancellor is looking seriously at creating a small business bank, sponsored by the Government, to help back small business loans.

“Similar models already work with great success in Germany, and in the US through its Small Business Administration.

“We have long called for something similar in the UK.

“With a third of businesses missing their growth opportunities as a result of not getting all the credit they need, we believe this new bank will help firms grow and invest and get the recovery back on track.”