Mr Redwood’s question to the Chancellor during the Autumn Statement, 5 Dec

Mr John Redwood (Wokingham) (Con): Given that we need sensible amounts of new money and credit to fuel the private sector recovery, will the Chancellor update us on when RBS might be in a position to increase its balance sheets again—prudently—in order to make those loans available and when it might start to make a profit for the taxpayer, and will he consider the comments of those of us who think it needs to be split up to have more competitive and sensible banking?

The Chancellor of the Exchequer (Mr George Osborne): I very much respect my right hon. Friend’s observations on the problems in our banking system. There is an aggressive plan to reduce the bad bank elements of RBS, and that plan is on track, but, as I said earlier, I want more to be done. RBS is reducing the size of its investment bank quite considerably. It also recently received advice from the Financial Policy Committee, and I hope it takes that advice into account.

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  1. David Kelly
    Posted December 10, 2012 at 4:47 pm | Permalink

    It’s criminal that nobody in the House asked the Chancellor why he’s robbing English Peter blind in order to subsidise the Pauls in Scotland, Wales and Northern Ireland. From England’s point of view, the Autumn Statement means England doing the suffering that the entire Kingdom should be doing. For example, the usual suspects (the English NHS, education, transport , etc) have had funds removed in order to pay for UK-wide stuff. Isn’t it time that each individual nation within the kingdom paid its own way?

  2. James Sutherland
    Posted December 10, 2012 at 11:19 pm | Permalink

    It seems he completely missed the point of the question – deliberately or otherwise; essentially, it seems RBS is still too busy cleaning up its own mess to contemplate helping clear anyone else’s problems any time soon. Not a total surprise to anyone paying attention, but disappointing.

  3. Muddyman
    Posted December 11, 2012 at 1:33 pm | Permalink

    For stability, we need to restore to the Crown the power of issue and creation of monies in all forms.
    The separation of investment banking should be a priority.
    Banks should only be permitted to lend money they have earned or borrowed, and should not be permitted to create money.
    Start with that and see the problem disappear.

  4. David Langley
    Posted December 12, 2012 at 2:15 pm | Permalink

    I want RBS to become a successful bank paying dividends to its long suffering investors and shareholders. The country will reap a rich dividend by a return on its investment plus interest.
    The retail banking employees were devastated by the idiots at the top who got greedy and scared of stopping their idiocy. Lets look forward to brighter and prosperous future.

  • About John Redwood

    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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