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Small Businesses

My Lords, I declare an interest, which is on the register, as an investor and a chairman of an SME AIM-listed company. My noble friend is absolutely right to talk about cash flow and payments by all kinds of people that are due to SMEs. He talked, too, of the flexibility that will be used by organisations such as HMRC, and I was very glad to hear it. Is he saying, for example, that on the large VAT payments that are frequently due by SMEs, HMRC would not be too offended if those payments were delayed somewhat? My noble friend also spoke of the 10-day effective rule. I do not know how far that goes down the line, but can he confirm that it will go well down the line to other government-controlled organisations? Very often, I can tell him, it does not apply. Can my noble friend give us some clarification on the banking situation in relation to loans in 2007, as it is still not totally clear? If the banks are to be as commercial as the Chancellor has suggested, whether part-owned by the public or not, and if banks are to continue with their normal method of business—although I am bound to say that they are not always marvellous at that—I take it that we are not asking banks to continue lending at 2007 levels to SMEs that clearly should not be lent any more money, even though it might mean them going into administration. That is right—and they should. May I also ask the Minister—