A former investment banker, Baroness Vadera joined the Treasury while
Mr Brown was chancellor and has since been one of his closest aides.
Her new role will be to advise the G20 on the design of institutions needed to implement
the “framework of sustainable and balanced growth” to be agreed this
It is not known the reason for the departure, but as the minister
within the Business Innovation & Skills department with direct responsibility
for Small Business, and one of a long line of ministers who have held
the post for a relatively short period, there is concern about just how
seriously Gordon Brown takes UK SME’s which account for 90% of British
Edward Rimmer UK & Ireland chief executive of Bibby Financial Services commented on the resignation of business minister Baroness Vadera: “As someone who championed late payment policies and supported small and medium-sized businesses and entrepreneurs througout the recession, it is sad that the post of business minister will have yet another new person in the role following her resignation. The Baroness’ replacement will see the sixth minister in this role in six years and it’s a shame we will be losing the Cabinet’s voice for small businesses.”
“We would like to see the next minister take up the work already started by Baroness Vadera concerning late payment policy, and encourage more large firms to sign up. We would also like to see more large firms sign up to a funding facility with alternative finance providers such as factors or merchant banks bridging the cash flow gap. This will provide cash to SMEs while they wait for the invoice to be processed, ensuring that cash flows more freely into more small businesses.
“The launch of an on-time invoice settlement system would also ensure larger businesses pay on time. If larger companies would automatically provide a due date for billing through their bank within the first week of satisfactory delivery of a product or service, this would provide more certainty for small businesses as to when they will be getting paid.”
“All businesses have a responsibility to operate fairly and consistently but we would ask the next minister both to support and to nurture industry and enterprise by enlisting a policy of best practice which, for many, will help ease the road to recovery for many.”