As if Alistair Darling does not have enough on his plate a he finalises his Pre-Budget Report on Monday, another problem is the talk of Westminster. There are growing concerns among ministers and MPs that Gordon Brown's much-praised rescue of the banks has done nothing to unblock the system and persuade them to start lending to businesses and home-buyers.
This is serious - for the economy, not just Brown's reputation as the man who saved the (financial) world. As Vince Cable, the Liberal Democrats' impressive Treasury spokesman, pointed out today, the money at the banks' disposal dwarfs even the most ambitious "fiscal stimulus" (tax cuts and higher government spending on building projects) that could be announced on Monday. If the banks don't start to lend it, then the recession could be long and deep, not short and sharp as the Government hopes.
We are promised more action on the banks in the mini-Budget. I expect Darling to expand the loan guarantee scheme under which the Government (75 per cent) and banks (25 per cent) share the risk of lending to small firms. But some Labour MPs are warning that the "nuclear option" of nationalising the banks will have to be considered if they don't start lending.
The banks really are public enemy number one. A survey of 233 businessmen by ComRes finds that they believe the banking industry is most responsible for the downturn. They have some interesting things to say about Mr Darling and George Osborne. Full details in tomorrow's paper and at ComRes.
i dont see how this reduction will help low income familys im trying to survive on 59.50 a week out of that 20 goes on gas and the same for electricity its an impossible situation and i feel so desperate especialy at this time of year how do u look at your children and say sorry theirs nothing for u this xmas i almost feel like ending it all at times i just dont see how cutting the vat by 2% will help i hav been living on this 59.50 a week for 6 weeks and i dont no how im doing it to be honest i have been reduced to selling my own things to put food on the table and i also go without food myself just to feed my daughter i have also cantacted my local mp with no response as yet i am quite litterally starving myself i cant believe this is what is happening to britsh people in 2008 its making me ill with worry that im on tablets etc from doctors were is the help for us low income people its so cold in my house i cant afford the heating etc if only the gouvernment would see how bad it really is for us i have thought about ending it all i do believe many people are so desperate they too feel like whats the point of living this nightmare if anyone has any sugestions please e mail me thank you i know were all feeling the same donnaxx123@aol.com
Posted by: donna | Sunday, 23 November 2008 at 11:36 AM
i know what you mean donna ,i too have very limited income even with working i was reading on the sunday express about how one middleclass person doesnt want the lower class to have this 1400 that the goverment are saying about us getting and how they managed with 2 jobs etc , if we dont have it we can do without typical response from a typical plum, the only thing you can do is like me and say sod it all heating on full and spend on what we need after all they cant get blood out of a stone and if the bailiffs come they can have my meagre possessions after all i may be broke but at least we can be happybroke and who knows i might just win the lottery .
Posted by: paul jeannette | Sunday, 23 November 2008 at 09:13 PM
Great post and comments. The middle class has become the low class and energy and gas prices are another way we all get squeezed.
Posted by: Organic Grog | Sunday, 30 November 2008 at 11:24 PM
Are all these bail out going to cause some serious hyper inflation at some point. Not sure who is more trouble, UK or US banks
Posted by: mskf | Wednesday, 10 December 2008 at 07:40 AM
It is about time that we all (voting public) made our voices heard with the government. We are all now aware that the Banks and those running the Banks are not with the best qualifications to do so and some are earning huge sums despite being unable to do their job. This form of capitalism has failed and at one time I was dead against the state having ownership of certain industries but the time has now come when the proof of people losing their entire wealth through others greed and incompetence has to end. The only secure way forward is to nationalise the entire UK banking system along with pensions and the boldest move would be to nationalise all the utilities and stop the greed forcing people into a poverty that in today's society is unacceptable. Real reform is what is required and if that means that Britain is seen as an outcast in the world of politics then so be it. The people and the welfare of the people must be paramount in this country and recent events only strengthen the argument for us to move towards a more socialist ideology when it comes to the people having a basic standard of living. As I have said before there is nothing wrong with anyone becoming rich just so long as it is not at the expense of others becming much poorer. We need to unite as a people and demand that our elected servants work for our interests and not their own.
Posted by: John Finningham | Saturday, 14 February 2009 at 06:25 PM
Coutts Bank HM Queens bankers chairman Lord Home is the subject of serious criminal allegations of money laundering tax evasion obstruction in Britains biggest ongoing organised criminal conspiracy and corruption case. The Carroll Foundation Charitable Trust one billion dollars crossborder international crime case - LOCKDOWN - FBI Washington DC field office the Metropolitan Police Scotland Yard Scotland Yard.
Posted by: carrolltrust | Sunday, 28 June 2009 at 05:56 PM