Vince Cable's plans for a business bank in the UK have been labelled "risky and incoherent" by the Institute of Economic Affairs. Mark Littlewood, Director General said:
The government should not be taking the risks from business lending that banks are not willing to bear themselves.
Cable's government-backed business bank is designed to deal with the problems of small business credit that have arisen since the financial crisis. However, the bank is unlikely to be up and running until seven years after the early events of the crash and so it is unlikely to have any impact on the short-term problems faced by businesses as a result of those events.
Now the Business Secretary has spoken we still don't have much more detail on how the bank of Vince would actually work in practice.
Nick Clegg's poor decision making has left the public baffled as to the role of his party in government. But he is not finished yet.
The Business Secretary wants to set up a 'bank' to try to crack the problem that has become very acute for many firms - access to finance.