Miliband takes inspiration from Germany with new regional banks policy

Labour would establish a new network of banks, modelled on the German <i>Sparkassen</i>, with a duty to promote growth in underdeveloped regions.

The "blank sheet of paper" is being filled. Ed Miliband will announce today that a Labour government would establish a new network of regional banks as partners of a British Investment Bank. In his speech at the British Chambers of Commerce conference this morning, he will say: "We do not just need a single investment serving the country. We need a regional banking system serving each and every region of the country. 

"Regional banks with a mission to serve that region and that region alone, not banks that are likely to say no but banks that know your region and your business; not banks that you mistrust, but banks you can come to trust."

The policy, like much of Miliband's political economy, has a distinctly German flavour. Last February, Chuka Umunna visited the country to study the Sparkassen, locally managed banks with a duty to promote growth in economically underdeveloped regions. The shadow business secretary said: 

There is quite a lot we can learn, in particular from the savings banks here, the Sparkassen, which have a much better relationship, if you like, with their businesses, the people here, their banking structure's very local in its nature, the people running those local banks really understand and get to know the businesses, so they're in a good position to assess the risk and provide the support needed to. 

Labour's Small Business Taskforce, which publishes its final report today, has identified the lack of  finance for small and medium sized enterprises as one of the factors restricting growth and innovation. It suggests that a new German-style network of regional banks (dubbed "Sparks") could help promote a more balanced economy.

There are important details to be worked out, most notably where the banks will operate and how they will be capitalised, but this is an encouraging example of Miliband's long-term focus on rebuilding "the foundations" of the economy. 

Ed Miliband walks through Hyde Park after addressing TUC members at the end of a march in protest against the government's austerity measures on October 20, 2012. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

#Match4Lara
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#Match4Lara: Lara has found her match, but the search for mixed-race donors isn't over

A UK blood cancer charity has seen an "unprecedented spike" in donors from mixed race and ethnic minority backgrounds since the campaign started. 

Lara Casalotti, the 24-year-old known round the world for her family's race to find her a stem cell donor, has found her match. As long as all goes ahead as planned, she will undergo a transplant in March.

Casalotti was diagnosed with acute myeloid leukaemia in December, and doctors predicted that she would need a stem cell transplant by April. As I wrote a few weeks ago, her Thai-Italian heritage was a stumbling block, both thanks to biology (successful donors tend to fit your racial profile), and the fact that mixed-race people only make up around 3 per cent of international stem cell registries. The number of non-mixed minorities is also relatively low. 

That's why Casalotti's family launched a high profile campaign in the US, Thailand, Italy and the US to encourage more people - especially those from mixed or minority backgrounds - to register. It worked: the family estimates that upwards of 20,000 people have signed up through the campaign in less than a month.

Anthony Nolan, the blood cancer charity, also reported an "unprecedented spike" of donors from black, Asian, ethcnic minority or mixed race backgrounds. At certain points in the campaign over half of those signing up were from these groups, the highest proportion ever seen by the charity. 

Interestingly, it's not particularly likely that the campaign found Casalotti her match. Patient confidentiality regulations protect the nationality and identity of the donor, but Emily Rosselli from Anthony Nolan tells me that most patients don't find their donors through individual campaigns: 

 It’s usually unlikely that an individual finds their own match through their own campaign purely because there are tens of thousands of tissue types out there and hundreds of people around the world joining donor registers every day (which currently stand at 26 million).

Though we can't know for sure, it's more likely that Casalotti's campaign will help scores of people from these backgrounds in future, as it has (and may continue to) increased donations from much-needed groups. To that end, the Match4Lara campaign is continuing: the family has said that drives and events over the next few weeks will go ahead. 

You can sign up to the registry in your country via the Match4Lara website here.

Barbara Speed is a technology and digital culture writer at the New Statesman and a staff writer at CityMetric.