Business secretary Vince Cable will today confirm his backing for a new British Business Bank, designed to boost lending to UK SMEs.  

As Recruiter reported, recruitment industry financiers welcomed the original announcement made earlier this month.

At today’s Lib Dem Party Conference, Cable will say: “I am working with the chancellor to develop a state-backed institution that will combine up to a billion pounds of new government capital with a larger private sector contribution.

"This will then apply further leverage through guarantees to support up to £10bn of finance to SMEs - a significant portion of all the lending available." He will promise to fight short-termism and "get behind" good firms.

The bank will operate via existing lenders, and is due to open within 18 months. Government support will take the form of both guarantees and equity, and will go on to the balance sheet of the new institution and not be reclaimed by the Treasury.