Pre-Budget Report

I want to respond to comments made in the debate. We had a detailed discussion about the importance of the fiscal boost, which was clearly and well argued for by my right hon. Friend the Member for Bolton, West (Ruth Kelly), who pointed out the limitations of monetary policy at a time like this. Yes, we need monetary policy and action to support the banks and get them lending again, which is why the action of the Royal Bank of Scotland at the weekend has been welcomed as a step forward, and we do of course need to go further. The hon. Member for Tatton seemed to be calling for radical monetary policy; it sounded to me as if what he was actually calling for was an end to the independence of the Bank of England and for him to set interest rates instead.