The UK Government will meet today with the former senior partner at private equity firm 3i Group mandated to find a way of easing the funding difficulties faced by the country’s smaller businesses. One option for solving the problem could mean state-owned banks are called on to play a bigger role in helping to deliver fresh capital.

The government asked Christopher Rowlands, a former senior manager at UK-listed 3i, to lead its Growth Capital Review in June. The review is expected to be published before this autumn's pre-budget report by the Chancellor of the Exchequer, Alistair Darling.