Consumers should get change from their £1,200, says Which?
24 November 2008
As Alistair Darling prepares to deliver his pre-budget report, research from Which?* shows that just over half (51 per cent) of people think that failings by either the Government or by regulators are at least partly to blame for the financial crisis.
And with a consumer-funded bailout representing £1,200** from each UK taxpayer, Which? is calling on the Government to take radical steps to rebuild the banking system so that it is more consumer-focussed. Which? believes that an independent review*** is the best way to identify what reforms are needed.
The economic downturn is already affecting the majority of people, with four in five (79 per cent) saying they are worried about at least one area of their finances as a result of the crisis. Two fifths (40 per cent) of people are concerned about the security of their savings, 31 per cent about the value of their pension and 27 per cent about mortgage rates.
Which? chief executive, Peter Vicary-Smith, says:
“We need radical reforms to deliver a strong, stable banking system that protects the long-term interests of consumers, rather than the short-term interests of the banks.”
“We must identify what went wrong in the past to ensure that we don’t repeat those mistakes in the future. The best way to achieve this is through an independent review.”
Notes to Editor
*Which? interviewed 1001 GB adults online on 16 & 17 October 2008. **£37 billion in taxpayers’ money has been injected into the UK’s failing banks. There are 30.8 million taxpayers in the UK. This equates to £1,200 each.
***Which? calls on the government to establish an independent review to determine the future of banking, ensuring that the interests of the consumer are put at the centre of any reform. A review should address: > How problems on the wholesale banking sector have impacted on the retail banking sector > How to protect essential routine banking functions within a complex financial environment > Protection of the retail banking sector from excessive and unstable risk > Competition in the retail banking sector