Ed Miliband: Labour would create regional banks to back local firms

Local businesses would be helped by regional banks under a Labour government, Labour leader Ed Miliband has announced.

Speaking on Thursday morning at the British Chambers of Commerce Conference, Miliband said he was inspired by Germany’s “Sparkassen” in proposing regional banks.

These banks, as a framework for the British investment bank, would be “serving every region of the country and only that region alone”.

The Labour leader envisaged the proposal as bringing in “banks that don’t say no to you but banks that know your business”.

“Banks are there to serve Britain’s businesses. Britain’s businesses aren’t there to serve Britain’s banks.”

Its weaselly. If Labour wants to direct lending to SMEs, fine. Be honest and open about it and use already state-owned RBS. @sunny_hundal

— Faisal Islam (@faisalislam) March 14, 2013

 Ed Miliband also called on Chancellor George Osborne to “look at” the issue of business rates in his budget next week.

Business rates are to blame for putting “huge costs” on firms and “making it an incredible struggle to survive”, Miliband said.