Jobs and Growth

Debate between David Wright and George Osborne

Wednesday 12th October 2011 Commons Chamber

[Mr Osborne]

It will be on top of the £75 billion. I have not gone through the QE and credit easing policies in detail today because I went through them in the House on Monday, but I would be happy to do so if Members like. QE is an operation undertaken by the Bank of England under the procedures established by my predecessor. The credit easing options that we are looking at involve the Treasury—or rather the Government—using its balance sheet to get money to small businesses either by purchasing securitised small loans, purchasing mid-cap company bonds in the bond market or issuing guarantees through the banking system. All those things currently happen in Britain, but on a very small scale. Our intention is greatly to increase them, and I will set out the proposals in November.

[David Wright (Telford) (Lab)]

I am grateful to the Chancellor for letting me intervene. Would he be willing to release all the information relating to meetings and discussions that he had with the Governor of the Bank of England on introducing the latest phase of QE, and does he anticipate that we may need more?

[Mr Osborne]

No, and not even in my memoirs, because the conversations between the Chancellor and the Governor of the Bank of England should be confidential. However, let me make it absolutely clear to the hon. Gentleman that we are talking about an entirely independent decision by the Monetary Policy Committee—not just the Governor of the Bank—and that I followed exactly the procedures established by my predecessor.