Government has set up a Growth Capital Review which will determine how Whitehall can help SME businesses access funding to invest in expansion.
The review, to be headed by venture capital expert Christopher Rowlands, will be the first measure to be implemented from the Government’s ‘New Industry, New Jobs’ strategic plan, unveiled in April
One idea thought to be on the cards is a modern-day version of the Industrial and Commercial Finance Corporation – a faction first initiated in 1945 by the Bank of England to provide small and medium businesses with capital. The scheme today is administered by venture capital firm 3i but business secretary Lord Mandelson is thought to be keen on an overhaul, given the banks’ ongoing reluctance to lend.
“This review will identify if there is a role for Government in facilitating public and private investment to address gaps in the market,” said Mandelson.
“Our priority will be to ensure that high-growth businesses, which will be very important for the economy, are able to secure the capital they need.”
