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Shadow business secretary John Denham said the Labour Party is examining the case for setting up a 鈥渘ational investment bank鈥� to renew the nation鈥檚 infrastructure in addition to the government鈥檚 proposed Green Investment Bank.

In his keynote speech to the Labour Party conference in Liverpool, Denham called on the coalition government to 鈥済et the Green Investment Bank going now鈥� and reform the banks in public hands in order to prioritise lending to small businesses.

Denham said: 鈥淪mall businesses are hurting. If you can鈥檛 get the banks lending, don鈥檛 just stand by and watch. Get the Green Investment Bank going now, reform the banks the public owns, and like Ed Miliband, Ed Balls and me, look at the case for a national investment bank.

鈥淟isten to the CBI and unlock investment in greening and renewing the infrastructure for a new economy.鈥�

He also backed the call by shadow chancellor Ed Balls this morning to use an extended bank bonus tax to fund the construction of new affordable homes.

Denham also hit out at the abolition of the Regional Development Agencies and the failure of the government to so far spend any of the 拢1.5bn regional growth announced last year.

Denham also criticised the coalition鈥檚 decision not to re-open the procurement of trains for Thameslink, which was awarded to German firm Siemens earlier this year, saying Labour would 鈥渟hape markets鈥� by setting competition rules.