Global Economy

Michael Meacher Excerpts

Thursday 11th August 2011 Commons Chamber

[Mr Osborne]

We of course continue to monitor the situation at RBS and all the British banks very closely. There is a concern in the financial markets about the capitalisation and liquidity provisions of banks in many countries. I have to say that those concerns have not been expressed at the moment about the UK. We passed the stress tests well and we have a strong liquidity provision in place for the banks, including RBS, and the markets can therefore have confidence in British banks.

[Mr Michael Meacher (Oldham West and Royton) (Lab)]

Is it not clear that the Chancellor’s whole strategy is failing, as it is now almost entirely dependent on achieving growth? As the economy has been flatlining for nine months, export markets are stymied, quantitative easing has already been tried with little or no effect and interest rates are already flat on the ground. Where exactly does he expect the growth to come from to get us out of prolonged stagnation?

[Mr Osborne]

As I have said, the British economy is growing and it is the assessment of the Bank of England and the Office for Budget Responsibility that it will continue to grow. The growth in the last six months has actually been stronger than in the United States, and half a million jobs have been created in the private sector in the last year—