The national loan guarantee scheme was run by the banks, and it was the banks that chose what companies to fund. Let me say this: we have done more than any previous Government to ensure that companies pay their taxes. We inherited a situation from Labour in which foreigners were not paying stamp duty, companies were leaving Britain, and we were giving knighthoods to bankers who had failed Britain. All of that has changed.

The national loan guarantee scheme was run by the banks, and it was the banks that chose what companies to fund. Let me say this: we have done more than any previous Government to ensure that companies pay their taxes. We inherited a situation from Labour in which foreigners were not paying stamp duty, companies were leaving Britain, and we were giving knighthoods to bankers who had failed Britain. All of that has changed.

The biggest plan we have in this area is to expand the number of people going into higher education by taking the cap off the numbers who can attend. Our plans on fees and repayments are clearly set out. It is encouraging that they have not put people off going to university, nor have they put people from low-income backgrounds off going to university.

I would make this point to the hon. Gentleman. Someone said in June 2010:

“A graduate tax would replace upfront tuition fees…I want to consult widely before publishing detailed plans later this year.”

That was the Leader of the Opposition, in June 2010. I know we are dealing with a blank page and an empty head, but for heaven’s sake, get on with it.

The biggest plan we have in this area is to expand the number of people going into higher education by taking the cap off the numbers who can attend. Our plans on fees and repayments are clearly set out. It is encouraging that they have not put people off going to university, nor have they put people from low-income backgrounds off going to university.

I would make this point to the hon. Gentleman. Someone said in June 2010:

“A graduate tax would replace upfront tuition fees…I want to consult widely before publishing detailed plans later this year.”

That was the Leader of the Opposition, in June 2010. I know we are dealing with a blank page and an empty head, but for heaven’s sake, get on with it.

I commend my hon. Friend for his consistent campaigning and speaking out on this issue. We are taking the tough action needed on payday

lending, but, as he says, the positive side of this is that we need to expand credit unions faster, and we should be looking at all the ways that can be done, including through other organisations partnering with credit unions and encouraging their work.

I commend my hon. Friend for his consistent campaigning and speaking out on this issue. We are taking the tough action needed on payday

lending, but, as he says, the positive side of this is that we need to expand credit unions faster, and we should be looking at all the ways that can be done, including through other organisations partnering with credit unions and encouraging their work.

Let me first commend the hon. Gentleman for the work that he does in relation to payday loans and the need for tough regulation. I think it absolutely right for us to look at the issue, and to ensure that we get things right.

Earlier this month, the Government published two reports which showed that the problems in the payday market persist, and that consumers continue to suffer. As a result, the Financial Conduct Authority has made a series of proposals, all of them worth while. They include proposals to use powers to ban loans and advertisements of which it does not approve, to ensure that lenders cannot roll over loans more than twice, and to limit the number of attempts that a payday lender can make to take money out of accounts.

We are still considering the issue of a cap, and I do not think we should rule it out, although we must bear in mind what has been established in other countries, and by our own research, about whether a cap would prove effective. It is absolutely right for us to regulate this area properly.

Let me first commend the hon. Gentleman for the work that he does in relation to payday loans and the need for tough regulation. I think it absolutely right for us to look at the issue, and to ensure that we get things right.

Earlier this month, the Government published two reports which showed that the problems in the payday market persist, and that consumers continue to suffer. As a result, the Financial Conduct Authority has made a series of proposals, all of them worth while. They include proposals to use powers to ban loans and advertisements of which it does not approve, to ensure that lenders cannot roll over loans more than twice, and to limit the number of attempts that a payday lender can make to take money out of accounts.

We are still considering the issue of a cap, and I do not think we should rule it out, although we must bear in mind what has been established in other countries, and by our own research, about whether a cap would prove effective. It is absolutely right for us to regulate this area properly.

The start-up loans initiative is a very strong one. I want to look at putting even more resources into it, because there is a major demand. At well as start-up loans, we have the enterprise allowance scheme. That was originally available only after people had been unemployed for three months, but under this Government it will be available from the first day of someone being unemployed. In the 1980s, many people used an enterprise allowance scheme to start up their first business and get their foot on the first rung of the ladder. Those are the sorts of people we want to help.

The start-up loans initiative is a very strong one. I want to look at putting even more resources into it, because there is a major demand. At well as start-up loans, we have the enterprise allowance scheme. That was originally available only after people had been unemployed for three months, but under this Government it will be available from the first day of someone being unemployed. In the 1980s, many people used an enterprise allowance scheme to start up their first business and get their foot on the first rung of the ladder. Those are the sorts of people we want to help.

The credit easing policy—the national loan guarantee scheme—is going to make available £20 billion of extra loans; some of that money is already available. The Merlin scheme saw lending to small businesses go up in 2011. It is difficult when the banks are nervous about the economic situation, but the Treasury and the Bank of England are doing all that

they can, including through the Merlin agreement, to get money out of the banks and into hard-pressed businesses.

The credit easing policy—the national loan guarantee scheme—is going to make available £20 billion of extra loans; some of that money is already available. The Merlin scheme saw lending to small businesses go up in 2011. It is difficult when the banks are nervous about the economic situation, but the Treasury and the Bank of England are doing all that

they can, including through the Merlin agreement, to get money out of the banks and into hard-pressed businesses.