Chancellor of exchequer George Osbourne has unveiled plans to start a state supported bank for small businesses.

The purpose of the bank is to solve one of the largest issues concerning small businesses, the ability to get credit from banks. The aim is to get credit flowing to small businesses.

It’s been said that the bank will operate predominantly online and will not have any branches to begin with. The proposal for the bank is inspired by similar models in the US, Ireland and Germany.

The opposition part (Labour) asked why this proposal had taken to long, after it called for such a proposal a year ago.

Subscribe to our newsletter by clicking here to keep posted on this exciting news!