A number of constituents have written to me about the sell off of RBS.
It is important to remember the circumstances of why RBS was bailed out
in the first place: The near collapse of the economy in 2008 must be laid at
the feet of the then Labour government. Reckless over spending and so-called
light touch regulation led directly to the first run on a UK bank (Northern
Rock) for 150 years. As we all know the contagion spread. It has taken the
nation a decade or more to recover and become a strong and healthy economy that
can now afford to increase spending on the services we all use and appreciate.
With the banking crisis dealt with the plan to sell
off the shares has commenced. Lloyds Bank and other share sales have
actually been profitable. Philip Hammond did pause the sale of RBS to ensure
the best outcome. Looking at the sums and complex instruments used it is not
easy to establish costs but it is worth remembering the government applied very
substantial fees for giving guarantees to RBS. The bank levy has
also raised £14.5bn between 2011/12 and 2016/17. It makes for some comfort from
a situation that should never have arisen in the first place. There has been
another £20bn of extra revenue paid by the banks recently – a further
endorsement of the now sound financial state of the UK and so it is that
taxpayers money will be returned to HM Treasury.
A properly regulated banking system operating in a strong and well
managed economy are the best ways to ensure a repeat
of these events.
High street banking has seen a revolution in how it operates and
how customers interact with their bank. I have taken a keen interest in this
and the impact these changes make on our communities. Please be in touch if you
have any specific concerns.
