Where is the Government's strategy on the banks?

George Osborne stressed that taxpayers are “right to be angry” about Labour’s handling of the banking sector following the results announced this week by Barclays, HSBC, Northern Rock and Lloyds Banking Group.

The Shadow Chancellor said that “profits have been privatised and subprime losses have been nationalised” after Barclays and HSBC reported large profits, whereas the taxpayer-owned Northern Rock and Lloyds lost billions.

George attacked the Government for having “no strategy at all”, stressing:

"Time and again the Prime Minister and Chancellor said they'd stop big bonuses, now we see mega pay packages and massive bonuses off the back of taxpayers' money.”

“Time and again the Prime Minister and Chancellor assured us that they had binding agreements to secure more lending. Now we find lending is falling by unprecedented amounts.”

George also criticised the Government for failing to get the Asset Protection Scheme, which is vital to helping banks lend, up and running.

He stressed, “When it comes to banking this Government offers no leadership, no strategy, and no plan. We need a change of Government."