Miliband backs a National Investment Bank

The Labour's leader proposal is good economics and smart politics.

Ed Miliband's speech on banking this morning received little media attention, largely since the main points were previewed in his Mail on Sunday interview. But one story that few have noticed is that the Labour leader has come out in support of a National Investment Bank.

In an interview with the New Statesman last September, Miliband said: "It's an interesting idea. It's something Ed [Balls] and I have talked about. It's definitely an idea worth exploring." He went on to commission Nick Tott, a former partner of Herbert Smith LLP, to examine the case for such an institution. Toot's report has now been published and has concluded that "there is a strong case for a British Investment Bank." In his speech, Miliband said:

Partly because it’s always cheaper for banks to lend to big companies than small ones.

We don’t believe the banks we already have will be equal to the task of lending enough to small businesses.

That’s why we believe there is a case for a British Investment Bank.

Government recognising its role to guarantee lending to small business to provide the long-term finance it needs.

It was a similar institution in the United States which gave a young entrepreneur a loan in the early eighties when nobody else understood his sector.

His name was Steve Jobs.

And he founded Apple.

Every other major country understands that government needs to act to tackle this problem of financing.

It’s time that British business stopped having to compete with one hand tied behind its back.

As Robert Skidelsky argued in our special "plan B" issue last year, a National Investment Bank, with the power to borrow [unlike the coalition's Green Bank], and a mandate to invest in infrastructure, would both stimulate recovery and support long-term growth.

Miliband's decision to support the proposal is also smart politics. Vince Cable, who called for part of RBS to be converted into a National Investment Bank in a private letter to David Cameron, is growing increasingly frustrated with the coalition's failure to stimulate growth. In his interview with Andrew Marr yesterday, he accused the banks of "throttling the recovery" through their obsession with obsession with "short-term trading profits". It is precisely this problem that a National Investment Bank is designed to address. But the constraints of the coalition mean Cable is unable to say so. In coming out for an Investment Bank, Miliband is reminding the Lib Dems that they are, in many respects, closer to Labour on economic policy than the Tories.

Labour leader Ed Miliband said a National Investment Bank would provide "long-term finance". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The footie is back. Three weeks in and what have we learned so far?

Barcleys, boots and big names... the Prem is back.

Another season, another reason for making whoopee cushions and giving them to Spurs fans to cheer them up during the long winter afternoons ahead. What have we learned so far?

Big names are vital. Just ask the manager of the Man United shop. The arrival of Schneiderlin and Schweinsteiger has done wonders for the sale of repro tops and they’ve run out of letters. Benedict Cumberbatch, please join Carlisle United. They’re desperate for some extra income.

Beards are still in. The whole Prem is bristling with them, the skinniest, weediest player convinced he’s Andrea Pirlo. Even my young friend and neighbour Ed Miliband has grown a beard, according to his holiday snaps. Sign him.

Boots Not always had my best specs on, but here and abroad I detect a new form of bootee creeping in – slightly higher on the ankle, not heavy-plated as in the old days but very light, probably made from the bums of newborn babies.

Barclays Still driving me mad. Now it’s screaming from the perimeter boards that it’s “Championing the true Spirit of the Game”. What the hell does that mean? Thank God this is its last season as proud sponsor of the Prem.

Pitches Some groundsmen have clearly been on the weeds. How else can you explain the Stoke pitch suddenly having concentric circles, while Southampton and Portsmouth have acquired tartan stripes? Go easy on the mowers, chaps. Footballers find it hard enough to pass in straight lines.

Strips Have you seen the Everton third kit top? Like a cheap market-stall T-shirt, but the colour, my dears, the colour is gorgeous – it’s Thames green. Yes, the very same we painted our front door back in the Seventies. The whole street copied, then le toot middle classes everywhere.

Scott Spedding Which international team do you think he plays for? I switched on the telly to find it was rugby, heard his name and thought, goodo, must be Scotland, come on, Scotland. Turned out to be the England-France game. Hmm, must be a member of that famous Cumbrian family, the Speddings from Mirehouse, where Tennyson imagined King Arthur’s Excalibur coming out the lake. Blow me, Scott Spedding turns out to be a Frenchman. Though he only acquired French citizenship last year, having been born and bred in South Africa. What’s in a name, eh?

Footballers are just so last season. Wayne Rooney and Harry Kane can’t score. The really good ones won’t come here – all we get is the crocks, the elderly, the bench-warmers, yet still we look to them to be our saviour. Oh my God, let’s hope we sign Falcao, he’s a genius, will make all the difference, so prayed all the Man United fans. Hold on: Chelsea fans. I’ve forgotten now where he went. They seek him here, they seek him there, is he alive or on the stairs, who feckin’ cares?

John Stones of Everton – brilliant season so far, now he is a genius, the solution to all of Chelsea’s problems, the heir to John Terry, captain of England for decades. Once he gets out of short trousers and learns to tie his own laces . . .

Managers are the real interest. So refreshing to have three young British managers in the Prem – Alex Neil at Norwich (34), Eddie Howe at Bournemouth (37) and that old hand at Swansea, Garry Monk, (36). Young Master Howe looks like a ball boy. Or a tea boy.

Mourinho is, of course, the main attraction. He has given us the best start to any of his seasons on this planet. Can you ever take your eyes off him? That handsome hooded look, that sarcastic sneer, the imperious hand in the air – and in his hair – all those languages, he’s so clearly brilliant, and yet, like many clever people, often lacking in common sense. How could he come down so heavily on Eva Carneiro, his Chelsea doctor? Just because you’re losing? Yes, José has been the best fun so far – plus Chelsea’s poor start. God, please don’t let him fall out with Abramovich. José, we need you.

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 27 August 2015 issue of the New Statesman, Isis and the new barbarism