SIR – All hail St George Osborne! He has embarked upon an initiative aimed at encouraging the banks to lend to small businesses.
But before we kill the fatted calf for the celebration, this initiative requires a little more clarification. The banks have only agreed to lend to small businesses provided the Government (ie you and me as tax-payers) guarantee these loans. So the banks will not be exposed to any risk whatsoever.
Last week St George also sold off Northern Rock to Mr Moneybags Branson. It was trumpeted at the time that it was sold for ‘only’ half a billion less than we (the taxpayer again) paid for it.
‘Oh well, not too bad’, you may say. What they failed to disclose, however, was that the £21billion the bank owes is to remain the responsibility of, errr, the taxpayers.
It now seems logical to me, that if the Government is going to continue to use the taxpayers as guarantors for risk-averse banks and capitalists, then the logical first step of any future Labour Government should be to nationalise the banks. Let’s see how that grabs ‘em !
Christopher Hindle, Osterley Grove, Bradford
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