Partner Article

Sir Peter Burt to chair business bank

The former Bank of Scotland chief executive has been appointed as the chair of an advisory group for the Government’s business bank.

Sir Peter Burt, also former chair of ITV, will take on the unpaid role instrumental in Vince Cable’s bank, which hopes to open up routes to finance from non-bank sources, and stimulate investment in the private sector.

The Business Secretary’s £1bn bank will offer £300m of its new funding to sources of finance for the private sector, as announced in the Chancellor’s Autumn Statement.

Dr Cable said: “Small and medium sized businesses are the lifeblood of the British economy but they are currently struggling to accrue the long term capital they need to grow.

“This is an important gap in their growth cycle which the business bank will plug by offering new sources of finance.

“To help deliver this, the Government will be advised by a talented panel of experts, led by Sir Peter Burt. It is important we get the development of the bank right.

“This is a long term, durable institution, not a quick-fix gimmick, and I’m confident that we are on track to deliver this help.”

Government schemes already set up to provide funding to SMEs will come under Cable’s business bank, and Sir Peter will be instrumental in deciding how credit is distributed amongst existing lenders.

In an official announcement on Thursday, the Department for Business Innovation and Skills (BIS) said the business bank is expected to open on a commercial basis, and discussions will begin with the European Commission in January to ensure that proposals around the bank are in line with state aid rules.

Sir Peter commented: “There has been a significant long-standing gap in SME finance, so it is welcome news that the Government is taking action to tackle this problem and help provide long term finance solutions for SMEs.

“I’m delighted to have been asked to help the Government in their work to create this institution and recognise the potential this institution has in changing the finance landscape.

“I look forward to working with the advisory group and putting our collective experience to good use.”

Keith Morgan, former non-executive director of Northern Rock, has also been appointed to advise the Government on the new institution, and will lead a Whitehall team to plan for the bank’s future.

Matthew Fell, CBI Director for Competitive Markets, said: “The CBI welcomes the appointment of Sir Peter Burt to chair the advisory group for the Government’s business bank.

“Sir Peter’s first challenge for 2013 will be to ensure the business bank has clear objectives to help small and medium businesses grow, like bringing all existing Government financial support under one roof. We look forward to working with him and colleagues to make that happen.”

This was posted in Bdaily's Members' News section by Miranda Dobson .