The Retail Motor Industry Federation (RMI) sees the introduction of a UK business bank as a positive step towards restoring financial stability within small and medium sized businesses, according to Sue Robinson, RMI director.

Business Secretary Vince Cable announced today that the Government has agreed to put £1 billion into a new UK business bank which will be created specifically to help fund small to medium sized businesses.

Robinson said: “It is encouraging that the Government plan to offer assistance to small and medium sized businesses at a time when they need it most. A UK business bank will help businesses by addressing the existing problem plaguing these businesses – the ability to secure a loan.

“We hope the incentive will deliver on its promise and boost the amount of small and medium sized businesses that are able to loan money.”