Pre-Budget Report

The right hon. Lady recognises the robust way in which the Government have acted, but surely it is not enough just to have rescued the banks; it is necessary to repair them too. In reality, they are not in a position to lend until those bad debts are taken off their balance sheets, and a ““bad bank”” needs to be created to do that. Time needs to be taken to create a new bank—perhaps a ““post bank””—that would be able to lend effectively in the economy and get economic growth going again.