Major surgery need on banks – Nick Clegg tells Elisabeth Wilson

Lib Dem candidate for Halifax, Elisabeth Wilson, took the opportunity to ask Nick Clegg, Lib Dem leader, about the future of banking at a “town hall meeting” in Bradford.  Pointing out that “the Halifax” had gone from a building society to a bank, to a bigger bank, and now part of the huge LloydsTSB group, she expressed her concern for the effects on local employment as well as financial stability.

Nick Clegg said banks needed major surgery.  There should be a tightly regulated sector for high street banks where the public could trust their savings – and if things went wrong they would be bailed out.

This sector should be completely separate from the risk taking activities that had caused the banking crisis, which he said was the fault of greedy banker. This had led to the current recession. In his view there should be a 10% levy on the profits of banks until the loan from the taxpayers was paid off.

Nick Clegg compared Lib Dem proposals to the weak efforts of the current Labour government, merely having a one-off tax on bonuses, which many banks were planning to get round.

Later in the evening Elisabeth Wilson was able to have more discussions about the concerns local people have for employment in the Halifax area with Nick Clegg.

Nick Clegg was visiting Bradford for a town hall meeting at the Karmand community centre, where members of the public could put any questions to him.

The picture shows Elisabeth Wilson, Lib Dem candidate for Halifax with Nick Clegg MP, Lib Dem leader

Responding to Alistair Darling’s Budget, Liberal Democrat Leader Nick Clegg said: 

“Today we got a pick and mix Budget of recycled announcements from a government skilled in raising people’s hopes but incompetent at actually delivering help. “This Budget is a political supermarket sweep of random promises, without even a hint of a plan or any likelihood the promises will be put into practice. “The biggest disappointment in this Budget is its failure to sort out Britain’s unfair tax system. To put money into people’s pockets to help them make it through this recession. “Britain’s taxes are too heavy on those who can least afford it. And too easy to avoid for those who know how.  “The 50p rate will further encourage the very wealthy to avoid tax unless we tackle the unfair loopholes they exploit.  “The Liberal Democrats would get practical help to people who are struggling and cut the vast majority of people’s Income Tax bills by £700, paid for by taking aggressive action to clamp down on all the loopholes and exemptions that benefit the richest people and biggest businesses. “We would take big choices about what government should and shouldn’t do. “With a shocking deficit this year of £175bn we need a national debate about what the state can and cannot afford in the future. “That is the responsible way – the honest way – to reduce spending in the years ahead and avoid painful higher taxes. “But Labour is out of ideas and out of steam. “Today they have condemned us to years of unemployment and a decade of debt. “The country deserves something different.” Read a summary of the party’s Economic Recovery Plan at www.LibDems.org.uk/RecoveryPlan

You should be able to read Nick Clegg’s Budget response in the House of Commons at http://www.publications.parliament.uk/pa/cm/cmtoday/cmdebate/home.htm from around 5pm today