Prime Minister's question asked in the House of Commons, by Lord Cameron of Chipping Norton (Conservative). It was answered on Wednesday, 16 January 2008 on behalf of the Prime Minister.

Engagements

Question: I will tell you what you did. When it came to the need for a total guarantee of deposits, you dithered and delayed. When it came to the opportunity of pushing for a sale with Lloyds TSB, you dithered and delayed, and when it came to the advice that you were getting to sell the bank straight after the bank run, you dithered and delayed. Why did you dither and delay? It was because you were planning a general election. Will the Prime Minister confirm that he received advice from his financial advisers to push for an immediate sale after the bank run?

Answer: No, and there was no offer from Lloyds TSB, as the right hon. Gentleman alleges. He should return to the substance of the issue: if we had not intervened to save Northern Rock, there was a danger that that would spread across the whole economy. He supported our doing that in September. Does he still support us now? If we had not intervened, depositors would have lost their money. Their money has been protected. He supported us in September on that. Does he support us now? I say that we have taken the right, consistent action in the interests of the stability of the economy. To go backwards and forwards as he is doing would put the stability of the economy at risk.

Secondary information