Independent Banking Commission Report

Baroness Burt of Solihull Excerpts

Monday 12th September 2011 Commons Chamber

[Mr Osborne]

I have already talked about how the Merlin agreements try to protect and indeed increase small and medium-sized business lending at a time when many of these banks are shrinking their balance-sheets, which were over-extended. We have talked a lot about timetables. The Lloyds divestment and the creation of a new challenger bank are things that have to be got on with this year. The offer has to be put to bidders this year and it must be completed by 2013—and, hopefully, sooner. In other words, we are encouraging the creation of a new presence on the high street, which should give the hon. Gentleman’s constituents greater choice and competition.

[Lorely Burt (Solihull) (LD)]

This report is warmly welcomed, as, indeed, is the Chancellor’s response. It has to be said, however, that 2019 is a long time away. Will the Chancellor reassure the House, business and the public by publishing as soon as possible the specific route by which these recommendations will be implemented?

[Mr Osborne]

As I have said, the 2019 back-stop is the considered view of John Vickers and his commission. They have spent an enormous amount of time thinking about this, about trying to get the balance right between getting the rules in place, getting the rules right, and ensuring that they do not damage credit supply in the short term, about which many Members have asked. The report contains other milestones—some of the changes that he wants to see put into place by 2013, for example. John Vickers has done a good piece of work, and given a lot of thought to the issues, and I do not want to second-guess them just hours after he has published his report. We will produce a full, detailed response to the report by the end of the year.