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Labour has said it will establish a regional bank system if the party comes to power in the 2015 election.
The Labour leader Ed Miliband spoke at the Federation of Small Businesses Conference on Saturday (29th March) and set out a range of measures which would help small and independent companies thrive, including overhauling the banking system to allow regional banks to lend to local firms. The idea is being trialled in Salford, with the Bank of Salford, which works with local firms, unions and credit unions to help small businesses, according to the Manchester Evening News.
Miliband also said he would ensure small businesses were treated fairly by energy companies and establish a new British investment bank just for businesses.
“Too often businesses feel they serve our banks rather than banks serve them, the next Labour government will demonstrate a real culture change," he said.
“I will introduce a new British investment bank to specifically help small businesses.There will be a network of regional banks in every part of the country, lending only in their regions.”
Miliband also proposed giving business organisations such as the Federation of Small Businesses more power to act on behalf of its members, even taking on legal cases, to make sure “small businesses never feel again that their interests are overlooked.”
He said: “We need to guarantee that small businesses are always at the heart of decision making. We want to make it happen, which is why the Labour government will follow the advice of the FSB and place a US style small business administration at the heart of government, making sure with all the major decisions that affects you, they have a voice and seat at the table.”
Miliband also pledged to cut business rates should his party come to power.
Responding to the comments, Helen Dickinson, director general of the British Retail Consortium, said: “Any focus on business rates is, of course, welcome. The system is out-of-date and there is now a consensus across business and across the political spectrum that they are in need of fundamental reform. Ed Miliband is right to focus on supporting small businesses and high streets and the recognition that the cost of business rates has become unsustainable for retailers. With more than one-in-ten shops currently empty across the country we need a system that encourages investment and works for all business.”