Latest news: New bank to back start-ups

The government has announced plans to create a state-funded bank that will provide financial support to small to medium-sized enterprises (SMEs) and enterprises. 28/09/2012

According to the Department for Business, Innovation and Skills (BIS), the institution will 'address the long-standing structural gaps in the supply of finance' to companies of a certain size.

The new bank, which may be of interest to business and management graduates considering starting their own company, could support as much as £10billion of business lending if it attracts enough private sector funding.

Business secretary Vince Cable, said, 'We need a British business bank with a clean balance sheet and a mandate to expand lending rapidly and we are now going to get it.

'Alongside the private sector, the bank will get the market lending to manufacturers, exporters and growth companies that so desperately need support.'

The announcement comes after the latest Chartered Institute of Personnel and Development (CIPD) Labour Market Outlook showed SMEs are optimistic about increasing their staffing levels in the coming months.