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.

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Calm down, everyone – of course Nigel Farage is in the running for TIME Person of the Year

The former Ukip leader has been shortlisted for the iconic magazine list.

While your mole is no fan of former Ukip leader and triumphalist frog Nigel Farage, it has to scurry to his defence in this instance. There's been a big brouhaha (ie. some people on Twitter have posted a few half-hearted opinions and crap jokes) about the bonvivant Brexiteer being shortlisted for TIME's iconic Person of the Year.

He is one of 11 contenders for the position listed by the magazine, alongside the likes of Donald Trump, Mark Zuckerberg and Beyoncé. (What a dinner party that would be. We hope Zuck puts the photos up on Facebook.)

Why are people surprised by this? Farage is the reason the UK is leaving the European Union, and by doing so has made a big impact on national and global politics. Adolf Hitler and Joseph Stalin famously won the award, so we know it's not an endorsement, simply a measure of impact. And others on this year's list suggest this too: Recep Tayyip Erdoğan, Narendra Modi, Vladimir Putin, Donald Trump – all dubious political figures who have caused controversy.

So why the big deal about Farage?

Read more about TIME's shortlist here. The winner is announced tomorrow.

I'm a mole, innit.