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Wed 15th Oct 2008:

Willott: Unemployment figures show banking crisis has hit real economy.

Today's Office for National Statistics figures on unemployment revealed that the number of people out of work in the UK rose by 164,000 between June and August - the biggest rise for 17 years - taking the total to 1.79 million. The figures also showed the number of people claiming Jobseeker's Allowance rose by 31,800 to 939,900 in September. In a further sign of the economic slowdown, the number of people in work and the number of vacancies both fell. Shadow Work and Pensions Secretary, Jenny Willott said: "These figures come as no surprise and are only likely to get worse over the coming months.  The effects of the banking crisis have filtered down to the real economy and are affecting people across the county." “Now the banking rescue package has been agreed, the Government must turn its attention to unemployment and inflation. Real families across Britain are suffering, not just those working in the Square Mile. “As the number of vacancies shrink, it will be harder and harder to get people back into work. It will not simply be a case of retraining the unemployed if there are no jobs for them to return to.”

Tue 14th Oct 2008:

TV switchover - Don't lose the remote, Moore tells government.

Remote rural areas are in danger of being left behind in the move to a new TV age, Michael Moore warned in a parliamentary debate on the ‘digital switchover’ In November Mike's constituency in the Scottish borders will become part of the second area of Britain (after Whitehaven in Cumbria) to have the traditional analogue television signal switched off, so everyone will have to access TV digitally. The plan is for all parts of the UK to be ‘switched over' by the end of 2012. Mike welcomed the move to digital for the increased choice it is creating. But he attacked the "two-tier service" being created - what Digital UK had called "Freeview Lite". He highlighted research showing that across his local Border Television region as little as 55 per cent. of the population would receive the full Freeview service. Mike suggested that the licensing of digital TV should follow the same principles as that of licenses for mobile phone networks, where the licence requirements demanded that huge parts of the United Kingdom were covered. Ceredigion MP Mark Williams said that his constituency was also one of the ‘geographically challenging' areas where there might be no picture at all after the digital switchover. It is estimated that 1.5 per cent of the population who will not get any kind of Freeview picture - about the same percentage of the population that does not get an analogue picture at the moment. The party's Shadow Culture Secretary Don Foster also spoke in the debate. He began by congratulating Mike on obtaining the debate and paying tribute to his work on behalf of his constituents on this issue. Don also raised a number of concerns, but said that, in general, the picture was encouraging: "Digital is an exciting development within television and that it is providing more choice and more services. Among Don's concerns was the ‘tangled web of accountability' around the targeted help scheme, designed to help vulnerable groups with the switchover. He urged that particular attention be paid to ensuring that Sky, who have the contract for the scheme, are not able to use the large amount of data they gain access to for other marketing purposes. Don concluded by expressing his disappointment that the set-top boxes being provided under the targeted help scheme will not include a ‘return path'. As well as enabling access to general internet services, such a facility could be used to enable smart metering, to help people with independent living, or to extend local government e-services. Click here for the full text of the debate.

Mon 13th Oct 2008:

Clegg: Financial crisis may be an economic 9/11.

Liberal Democrat Leader, Nick Clegg has warned that the financial crisis could become an “economic 9/11”. During a speech to the IPPR think-tank at Canary Wharf, Mr Clegg said that the consequences of the banking crisis could breed conflict and instability and push democracies into narrow nationalism. He said: “In our world, economic strength is power. We do not yet know, when the dust settles from this crisis, where the power will lie. The financial collapse we are caught in may prove to be an economic 9/11. “9/11 was a security crisis, with security implications. This is an economic crisis, but its economic and social security implications are potentially no less profound.” Mr Clegg also welcomed the Government’s £37bn bail-out plan, and called for a “sea change” in the financial services industry bonus culture. He also demanded that European leaders “step up to the plate”. He added: “This crisis has proved that in our globalised world chains of cause and effect have no regard for territorial integrity. “European governments have a responsibility to reduce inequality in their own countries and to work together to reduce it across Europe as a whole. Extremists target vulnerable and marginalised groups. They will only find sympathy for their cause if disaffected groups feel that economic injustice has pushed them right to the edge. “It is up to European leaders to emulate the courage and cooperation that fixed the global economy the last time it lay in tatters. This time they must embrace the new powers of China, India and Brazil, rather than sustaining the post war settlement of over 50 years ago.”

Wed 8th Oct 2008:

Commons Diary 6th - 8th October.

MPs questioned Alistair Darling on the economic crisis, Ed Davey criticised the government and Tories for their responses to the South Ossetia conflict, Nick Clegg challenged Gordon Brown over cooperation on the economic crisis at PMQs. Monday October 6th MPs returned from the summer recess to question Alistair Darling on the economic crisis. Vince Cable urged the Chancellor make it clear that, in these emergency conditions, "the mandate of the Bank of England must include responsibility for averting a meltdown in the financial and economic system". Malcolm Bruce also spoke about the importance of getting a cut in interest rates, and said this should be accompanied by a cut in taxes to help people deal with rising costs. Susan Kramer made a similar point, saying that the inflation target should be put into abeyance for a period, to allow the Bank to take the steps necessary to prevent the present crisis from spilling over into the rest of the economy. Later, Jeremy Browne welcomed the second reading of the Dormant Bank and Building Society Accounts Bill, but said there was an important discussion to be had on the degree to which individual banks and building societies should be able to take a more local approach to projects that they have supported for a considerable period. Martin Horwood also spoke in the debate, making a robust defence of mutual building societies, noting that they were all still healthy while all those that demutualised had either crashed, been swallowed or been nationalised. Earlier, at DCMS questions, Don Foster challenged the government over the rules of ownership for football clubs. Bob Russell called for "a royal commission, or some other inquiry, into the whole stewardship and future of the national sport". Tuesday October 7th At foreign affairs questions Edward Davey accused the Government and the Conservatives of a 'deeply flawed' response to the summer crisis in South Ossetia, in proposing fast-track membership of NATO for Georgia and Ukraine. Lorely Burt asked about claims by a former CIA officer that the British territory of Diego Garcia had been used by the US to hold and interrogate terror suspects. In Westminster Hall, Steve Webb obtained a debate on the regional spatial strategy for the south-west. He attacked the strategy for being undemocratic and "incredibly top-down". Annette Brooke said the strategy would mean "the destruction of beautiful areas forever". Dan Rogerson said he hoped that, at some point in the future, there would be "a far more transparent, grass-roots-led programme that... gives communities control over their future." Matthew Taylor, Jeremy Browne, Julia Goldworthy, Stephen Williams, David Heath, Andrew George, Martin Horwood and Don Foster all contributed to the debate too. John Pugh obtained a debate on the Local Government Standards Board, in which he warned that the Board was presiding over a "grotesque failure of natural justice" in some cases. Tom Brake spoke in a debate on anti-drug awareness, calling on the minister to set out an action plan to address the patchy drugs and alcohol education in schools and prisons. Wednesday October 8th At PMQs, Nick Clegg challenged Gordon Brown over cooperation on the economic crisis at cross-party and international levels. He demanded the Prime Minister give more detail on plans for coherent EU and international action, and "recognise struggling families need money in their pockets now" while closing tax loopholes exploited by the rich.

Parties must work together to halt downward economic spiral - Clegg.

At Prime Minister's Questions, Nick Clegg asks for more detail on plans for coherent EU and international action, and urges tax cuts for struggling families On the day the Government announced a £50 billion rescue package for British banks, Liberal Democrat leader Nick Clegg challenged Gordon Brown over cooperation on the economic crisis at cross-party and international levels. He demanded the Prime Minister give more detail on plans for coherent EU and international action, and "recognise struggling families need money in their pockets now" while closing tax loopholes exploited by the rich. The exchange in full Nick Clegg I would like to add my own expressions of sympathy and condolence to the families and friends of those brave British servicemen who lost their lives during the summer recess in Afghanistan. This is indeed a day of reckoning for the British economy. It is also a test for this House. We must show the British public that we can work together to halt the downward spiral in the British economy. That is why, speaking for the Liberal Democrats, I can confirm that we wholeheartedly support the Government package. When a ship is sinking, we send out the lifeboats. We do not argue about who has steered it into an iceberg - that is a debate for another day. This is a national response to what the Prime Minister has rightly called a global crisis, so we need global responses, too. Will he give the House a bit more detail on exactly what he is doing to ensure that the European Union finally acts together? Will he and the Chancellor press the IMF later this week to provide support to Governments, such as Iceland's, who are overwhelmed by the crisis and unable to cover the liabilities of their banks on their own? Gordon Brown Once again, I am grateful for the right hon. Gentleman's question, because it allows me to explain, if he will allow me to do so, what we are doing in concert with our European partners and what we want to see happen at a global level. First, the co-ordinated cut in interest rates is an important signal that the world will come together to deal with this economic problem. I believe that it has come at the right time to show that the action that we are taking, the action that the Americans are taking and the action taken in other countries in Europe is action that is designed to solve together the problem we face. The problem is that the banking system has been overwhelmed by the fall-out from the sub-prime market in the United States and the bad assets that have been taken by many banks. Our method of doing this is to strengthen the banks in our country. In America, they are trying to move those bad assets into a Government fund. We feel that what we are doing is best for the banking system here, so while action is co-ordinated, each country will choose different things to do. On Friday, the G7 will meet and agree co-ordinated action on transparency, disclosure and how we deal with accounting standards. I believe that the changes such as the new colleges of supervisors that will regulate multinational companies across frontiers should come in immediately and be set up before the end of the year. There will be a meeting of the IMF on Saturday, which I believe will agree the same principles. Having talked to President Bush yesterday, I think that we will have an international leaders meeting soon to look at what we can do together. We need to have responsibility and integrity at the heart of the global financial system. We need a global early-warning system and co-operation among regulators that, to be frank, we in Britain have tried for for years, but have not been able to persuade other countries to support. We will continue to see co-ordinated action on economic policy. Nick Clegg I am grateful for the Prime Minister's reply. I am sure that he will agree that although this package is hugely important, it is only one part of the jigsaw that needs to be put together to get the economy back on track. He has said, rightly, that this is a time for new thinking, not for old dogma, so does he recognise that struggling families facing huge bills need more money in their pockets now? Will he act to close the numerous loopholes in the tax system, which benefit only the very wealthy, and use that money to cut taxes for people on low and middle incomes, who need that money the most? Gordon Brown I am grateful to the right hon. Gentleman. Of course, wherever there are loopholes in the tax system we will act to close them, and have done so over the last nine years. He asks about money going to hard-working families in this country to help them through these difficulties. Every family-in fact, 22 million families, basic-rate taxpayers-will receive £120 as a result of the decisions made by the House to give a tax cut. Equally, at the same time, as he knows, pensioners will receive £250 in the next few weeks for their winter fuel. Pensioners over 80 will receive £400 to help with their fuel bills. We have also extended help to low-income families by increasing the social tariff numbers to half a million and more. We are trying to do more in that area. We are trying to deal with the unacceptable problems raised by pre-payment meters. We will legislate if necessary to stop the practice of discriminating against those on pre-payment meters and we will continue to do everything we can to help the hard-working families of this country. Click here to read the rest of PMQs

Cable responds to £50 billion bank rescue package.

Vince Cable questions the Chancellor over the conditionality of the rescue package, and calls for reposession to be made the very last resort when people are facing difficulties with mortgage repayment. Responding to the statement in Parliament by Chancellor Alistair Darling, on the Government's bank rescue plan and a cut in interest rates, Liberal Democrat Shadow Chancellor Vincent Cable said: My colleague and party leader has already made it very clear that we support these measures as being in the national interest. They strengthen the banks and protect taxpayers' interests in a very difficult situation. However, the situation is fast moving: I think that the Chancellor is now aware that it has emerged in the past hour or so that eight London councils-and no doubt many others-have large holdings in Landsbanki. That problem will require his immediate attention. The key question that I wish to pursue in relation to the Chancellor's statement has to do with how the investment in the banks is to be secured. When the IMF bails out countries, it imposes conditionality. How will the conditionality for the banks be enforced and monitored? How will the Chancellor ensure that the taxpayer's money going into the banks comes out at the other end, so that he is not in effect pushing on a piece of string? What sort of assurance can workers and companies have that, at the end of the month when salaries and bills have to be paid, the money will be there in the banking system? Also on conditionality, I have been as stunned as the right hon. Gentleman has been by the sudden conversion of the champions of the bonus culture to advocates of a 1970s-style incomes policy. None the less, the Conservatives are right to say that there must be a fundamental change in banking culture. I hope that that will be carried forward in this programme. I welcome very much the decision on interest rates, which is all the more powerful for having been done collectively. It represents a recognition that we are not, as the Chancellor said, simply dealing with difficult times. We are also dealing with different times that require a fundamentally different approach from central banks. The key point is that we are moving on from problems in the financial system to problems in the real economy. Ordinary people are going to ask, "If the banks can be bailed out, why can't we be?" In that context, will the Chancellor speak to the Justice Secretary about introducing new procedures for the courts, to ensure that repossession is the very last resort when people are experiencing serious difficulties with their mortgage payments? That is not the case currently for many of the creditors. The Chancellor has been able to find £50 billion for the banks, so will he now ensure that the £8 billion that has been approved already for social housing is used rapidly to acquire the land and property that is becoming available at very big discounts, so that it can be made available for affordable housing? That would save many builders' jobs and prevent the new accumulation of toxic loans in the banking system. I think that we all acknowledge that this is the first and not the last step in what will be a very difficult process of recovery. Click here to read the exchange and the statement in full

Clegg: All must support the banking rescue package.

Liberal Democrat Leader, Nick Clegg has called for all political parties to support the Government’s banking rescue package on what he described as a “day of reckoning for the British economy”. Speaking shortly after Alistair Darling announced the £50bn package, Mr Clegg described a “fundamental shift in the way we view banks” and called for the obligations banks have to the public to change for good. He said: "With the support banks are now receiving, it is no longer justifiable to impose aggressive repossession policies on homeowners and insolvency policies on businesses. “The short-term bonus driven ethos must end today, starting with an end to all bonuses for bank board members whose role it is to ensure the stability of banks over the next decade rather than maximising profit over the next few months. "However, this is only one part of the jigsaw. We also need wider changes to help ordinary families: a cut in interest rates, tax cuts for those on low and middle incomes and a significant overhaul of the regulations governing the banking system. "Finally, although we fully support the steps taken today by our own Government, its is clear that what is also needed is international agreement on a new regulatory framework. Unilateral efforts are unsustainable. "Today we have seen a national response to a global crisis. Any long-term solution must be global too."

Elderly paying £1.6bn in social care charges - Lamb .

Elderly people paid £1.6bn in charges for their social care last year, new figures released today have revealed. These charges, levied on older people by local authorities under the means-tested social care regime, accounted for one fifth of all spending on services for older people, which totalled £8.9bn. A breakdown of contributions shows that older people paid: · £892m towards residential care · £258m towards home care · £37m towards equipment and adaptations Commenting, Liberal Democrat Shadow Health Secretary, Norman Lamb said: “The current long-term funding system for personal care for the elderly in England is simply not workable. “It is unfair, ineffective and unsustainable. People who use or work in the system find it irrational, confusing and unjust. “The Government has been dithering over reform for too long. We need radical reform of the system now. “The Liberal Democrats have proposed an extra £2bn to help fund a Care Guarantee which would entitle all older people to a personal care payment, based on need and not the ability to pay.”

Tue 7th Oct 2008:

Clegg reveals changes to Liberal Democrat Shadow Cabinet.

Liberal Democrat Leader, Nick Clegg today announced changes to his shadow cabinet team to reflect the new Government structure. The new appointments are: Alistair Carmichael Shadow Secretary of State for Scotland and Northern Ireland Tim Farron Shadow Secretary of State for Environment, Food and Rural Affairs Sarah Teather Shadow Housing Minister John Thurso Shadow Secretary of State for Business, Enterprise and Regulatory Reform Steve Webb Shadow Secretary of State for Climate Change and Energy In addition, David Heath will lead a Commission on Privacy with a remit to examine the current state of privacy in the UK and how new technology can be used to protect rather than undermine the confidentiality of personal data. Commenting, Nick Clegg said: “The team I am announcing today is a reflection of the vast talent in the Liberal Democrat party which will be able to hold the new cabinet to account. “I look forward to working with them to take forward my agenda and show that the Liberal Democrats are the only party with practical plans to help people in their everyday lives.”

Mon 6th Oct 2008:

Cable: Government must be clearer.

Liberal Democrat Shadow Chancellor, Vince Cable has called for the Government to be clearer in its response to the financial crisis. Speaking after Alistair Darling pledged to do whatever was necessary to support the banking system, Mr Cable called for all parties to work together in the national interest. He insisted it was “not a time for recrimination about past mistakes”, but argued that the Government must be clearer about its plans while people are so anxious about their savings. Mr Cable said: “In relation to bank deposit guarantees, it seems to us that if the Germans are to make an explicit guarantee to protect depositors savings we shall have to do the same for the UK high street banks. “Of course deposits are totally safe. “But people are anxious and the Government needs to make it clearer than it is doing, what depositor protection actually means. There are questions about accounts in merged banks, small private businesses and large sums temporarily on deposit during a house sale. “Second, the Government’s case by case approach to bank failures has been sensible so far and the right one in the case of Bradford and Bingley and the Lloyds-TSB - HBOS proposed merger. But we are in a dangerous environment in which banks are being picked off one by one. “I made proposals yesterday in a Sunday newspaper and the Conservatives have done the same, supporting re-capitalisation of banks based on part-nationalisation. Such a scheme would protect the taxpayers’ interests better than a US style bail out. “If the Chancellor cannot say any more now can he confirm that this issues is under discussion with the bank chiefs at their regular meeting at 6pm. “Third, the central question is the availability of credit as much as the cost. But official interest rates are also vitally important for millions of mortgage borrowers and businesses. “I have been for the last decade a strong supporter of the independence of the Bank of England and made my maiden speech on the subject in 1997. The Bank must remain politically independent. “I believe, however, that it must be spelt out by the Chancellor that its mandate must include the possibility of decisive action, including a radical cut in interest rates, to head off financial and economic meltdown. “Deflation, not inflation is currently the risk. Some members of the MPC who are arguing that the crisis is confined to the financial sector need a line of communication to Planet Earth. “The Chancellor has called my comments dangerous. I recognise the dangers but we live in very dangerous times and emergency action is needed. Millions of jobs and livelihoods depend on decisive action in the next few days and weeks.”  

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