George Osborne has said we need to work together to stop Britain sliding from “a banking crisis into a deep recession”.
The Shadow Chancellor stressed that while it’s vital to minimise any risk to the taxpayer, the only thing worse than Government action would be “inaction in the face of this crisis”:
“For then, the far-greater risk to the taxpayer, and the country, is of a long and lasting recession.”
He called for action to raise confidence, address the liquidity issue and recapitalise British banks, and asked Alistair Darling whether he agreed that banks which pay out dividends instead of rebuilding balance sheets should be held to account by regulators.
George ended by stressing, “Boom has turned to bust. Now bust must not become something worse. That is why the Conservatives stand ready to help.”