HC Deb 24 May 1982 vol 24 cc256-7W
Mr. Murphy

asked the Secretary of State for the Environment if he will make a further statement on the work of the financial institutions group.

Mr. Heseltine

The financial institutions group of managers working with my Department on inner city problems recommended earlier this year that the major banks should take special measures to encourage and support the development of small businesses in the inner city areas. It pointed to the success of such schemes in the USA, particularly in promoting business development in the black communities.

I put this recommendation to the banks, and have received an encouraging response.

I am glad to say that both Barclays bank and the Midland bank have recently appointed inner cities business development officers based in London, and Williams and Glyn's intends to make a similar appointment in Liverpool.

Lloyds bank is deeply involved in a joint venture with the city of Birmingham to provide finance for new small businesses and is considering how it can broaden its support in the West Midlands.

In addition the chairman of the National Westminster bank has informed me that three new business development officers will be appointed in the inner city areas of Liverpool, Manchester and South London.

I greatly welcome these initiatives, and believe they will be of significant value in stimulating the economic regeneration of our older urban areas. The other British banks are also considering how they too can help. I believe the banks have a positive role to play here and welcome these latest initiatives as doing yet more to further their involvement.