Financial Markets

I thank the Chancellor for his statement and advance notice of it. I repeat what we said last week: the whole House should have the right to hope and expect that the package will deliver confidence and stability and unfreeze the banking system. Many others have made the point that the Chancellor expects lending to small and medium-sized enterprises and mortgage lending to be at 2007 levels. Does he mean that on a cash basis or on a loan and mortgage application basis? More importantly, because we are now in a recession, demand may be reduced. Should there be a failure to meet the 2007 targets, can the Chancellor make it clear to the House and the financial markets that in no way would that be a measure of failure for the recovery plan?