Ed Balls: Banking report should be the start point for reform
Ed Balls, Labour's shadow chancellor, responds to the Independent Commission on Banking's report and urges for it to be the start for reform not the end point:
"The irresponsible actions of banks around the world caused the financial crisis for which families and businesses paid a heavy price. It's vital we all learn lessons and do everything we can to protect taxpayers and customers in the future. That is why we welcome this important and authoritative report.
"The ring-fence is a tough and radical proposal. It is right that banking services for individuals and small businesses should be protected.
"As Sir John Vickers had made clear the stalled recovery is not an excuse for ducking reform. The government should get on and legislate rapidly, as the report says, to provide certainty and the forthcoming Financial Services Bill is an ideal opportunity to do that. And it should accelerate action to introduce more competition and transparency into banking which will help consumers and small businesses.
"We should not lose the expertise of the Commission or impetus for reform so the government should ask Sir John Vickers and his team to publish a report in twelve months time on what progress has been made in implementing and legislating for these reforms. To make sure that consumers and small businesses don't end up paying for these reforms rather than the banks, the government and the Commission ought to review whether sufficient progress on competition has been made in 2013, two years earlier than the report recommends.
"But as Ed Miliband has said this report should be the start not the end point for reform. To help get the economy growing again we urgently need to increase net lending to small businesses, which the government's deal with the banks has failed to do, and we need action on issues like pay and bonus transparency."
