Oral Answers to Questions

Stephen Hepburn Excerpts

Tuesday 24th April 2012 Commons Chamber

[Mr Osborne]

My hon. Friend makes an extremely good point, which is that the banking industry has become very consolidated in recent years, because of the various mergers and failures during the financial crisis. Our ambition as a Government is to increase competition on the high street, and we took an important step towards that with our decision to sell Northern Rock back into the private sector and to support Virgin Money as a new lender on the high street, but of course other divestments are due to take place, and the ambition in the Vickers report, which we are implementing, is to increase competition.

[Mr Stephen Hepburn (Jarrow) (Lab)]

With 50 businesses going bust every day, but still getting battered by the banks with high interest rates and charges, when is the Chancellor going to get a hold of the banks and get them to put some money into the country and into British business? After all, we are the ones who bailed them out.

[Mr Osborne]

I am glad the hon. Gentleman reminds us that the previous Government bailed out the banks with no conditions attached, and we are having to pick up the mess. We want to help small business lending by using the Government’s balance sheet and the low interest rates we have earned with a credible deficit plan. We intend to increase competition in the high street: we sent Northern Rock back into the private sector with Virgin Money, a decision that was welcomed in the north-east of England, but opposed by the shadow Chancellor. We are taking the steps necessary, but yes, we are dealing with one enormous mess left to us by Labour.