Urgent action needed to protect savers

George Osborne has written to Alistair Darling to demand urgent action to protect savers in the face of increased financial turbulence.

The Shadow Chancellor stressed the need to reassure the public about the stability of the banking system by making the depositor protection regime more effective.

And he offered cross-party support for action to raise the level of deposit protection to £50,000 and make paying out easier and quicker:

"Working together we can pass the necessary legislation within days. The British public would know their savings are safe, even if the decision were made to let a financial institution fail."

George concluded by telling Darling that, "It is time to stop dithering and instead act decisively."