Guardian
On Tuesday, Vince Cable, the business secretary, announced a raft of industrial policy measures.
Getting star billing was the proposal to establish a new bank for
business lending, but he also proposed investments in skills, proactive
government procurement, and the relaxation of health and safety
regulations.
There are many questions that need to be asked about
his proposals. Why does the government need a new bank when it already
owns two of the biggest banks in the world – RBS and HBOS? Why is this
new bank supposed to be only a virtual bank – that is, a government pot
of money lent through other banks – rather than a proper bank?
