Page last updated at 12:51 GMT, Thursday, 16 June 2011 13:51 UK

Banks urged to boost lending to musicians

Banks should increase lending to Britain's aspiring musicians and music companies, culture minister Ed Vaizey has said.

At question time on 16 June 2011, Mr Vaizey told MPs: "I want to try and work with the banks to educate them on how the enterprise finance guarantee scheme can be used to support the music industry."

He was responding to concerns from Labour MPs and senior music figures that banks were not doing enough to help the stars of the future establish themselves.

Shadow culture minister Gloria de Piero said: "The government makes available around £2bn to British banks under the enterprise finance guarantee scheme to support SMEs [small and medium sized enterprises] in the creative industries.

"Industry representatives have told me only two music companies have been successful in raising loan finance via the EFG. One very experienced music manager was only successful on his ninth attempt."

Mr Vaizey said: "I recently met with important industry figures, Sandie Shaw [the first UK act to win the Eurovision Song Contest] and Brian Message, the manager of Radiohead, to discuss with a specific bank the making available of capital to musicians.

"I hope other banks will take note of this initiative."

MPs subsequently put questions to Leader of the House Sir George Young, his Lib Dem deputy David Heath, and representatives from the House of Commons Commission.

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