Labour: Govt must not duck out of necessary banking reforms

Chris Leslie, Labour's shadow treasury minister, urges the government not to duck out of banking reforms:

"The government needs to get a grip. The choked off recovery we've seen since George Osborne's spending review and VAT rise should not be an excuse for ducking the necessary reforms. And nor should rows between senior Cabinet ministers and coalition politics, nor lobbying by the banking industry, stand in the way of delivering banking reforms that are in the national interest. That's why in its final report next month the Vickers Commission should advise bickering ministers on the timing for implementing these reforms.

"In the short term we need the banks to support the jobs and growth that are essential to get the deficit down. That means tougher action to get the banks lending to small businesses and a fair tax on bank bonuses to fund 100,000 jobs for young people.

"And in the medium term we need banking reforms that pass Labour's three tests of protecting customers and taxpayers, securing international agreement to protect jobs in Britain and delivering a banking system that supports the long-term interests of the wider economy."