Lloyds break up must bring benefits to taxpayers and economy

Brussels 3 November 2009. Conservative Economic and Monetary Affairs spokesman in Europe Vicky Ford MEP today welcomed the break up of Lloyds and RBS as promoting greater competition in the UK banking sector but about the risks to taxpayers and the economy as a whole.

As part of the State aid requirements of the European Commission, the Government has agreed restructuring plans for RBS and Lloyds that include the divestment of a significant proportion of their retail and corporate banking assets over the next four years.

Ms Ford said,

"UK businesses and borrowers need access to a competitive bank market to get bank lending and the economy moving again, the intention of increased competition should be welcomed.

However, UK tax payers will be stunned by the vast amount of additional money that the government is proposing to put into the banks - nearly £40 Billion and more than the original bail out.

It is also vital that good parts of Lloyds or RBS are not disposed of at firesale prices. 

Ultimately this will come down to the government getting the best value for the taxpayers from sales - sadly the current government does not have a great record when it comes to asset sales - remember the gold." Ends

Contact: Vicky on +32 (0)2 2284 5672

ECR Press Office: Alex Benjamin +32 (0)476 056 450

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