TUC warns that preventing another banking crash is vital, but not enough

date: 4 February 2013

embargo: For immediate release

Responding to the Chancellor's speech today (Monday) on banking reform, TUC General Secretary Frances O'Grady said:

'It's good to hear the Chancellor finally moving towards the kind of action the TUC has long advocated by putting into legislation measures to prevent banks from getting round the Vickers Commission proposals.

'But the government is still failing to address the far bigger issue of banking reform - forcing banks to support businesses in the real economy.

'Trying to stop banks from creating another huge crash is vitally important, but it is not enough. Unless they start to address their poor track record of lending to businesses, other than financial and real estate firms, we will never see the kind of sustainable economic growth that we need.'

NOTES TO EDITORS:

- The Chancellor's speech is available at www.hm-treasury.gov.uk/speech_chx_040213.htm

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

Contacts:

Media enquiries:
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Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Alex Rossiter T: 020 7467 1337 M: 07887 572130 E: arossiter@tuc.org.uk