Prime Minister's question asked in the House of Commons, by Lord Cameron of Chipping Norton (Conservative). It was answered on Wednesday, 19 November 2008 on behalf of the Prime Minister.

Engagements

Question: May I start by thanking the Prime Minister for agreeing to the full, independent inquiry into baby P that I asked for here last week? This was never about politics; it was about getting to the truth, and I am grateful that we are to have that inquiry. Does the Prime Minister agree that bank reconstruction, which we all support, has not yet had the desired effect, in terms of ensuring that lower interest rates are passed on to businesses, and that credit is genuinely freed up?

Answer: First, on baby P, I think there is unity and common ground in this House on the fact that we have got to act quickly on the report on Haringey that is to come, and that Lord Laming’s work round the country is essential. We will look at what he says very carefully indeed. It is in all our interests that where there is failure, we change the system, and where people are to blame for failures, they are held accountable. As for the banking system, I think that we were right to recapitalise the banks. This act has now been followed in every country of the world. The issue now is how the banks will resume funding to small businesses and home owners, and we are in discussion with the banks—every one of the banks—about, first of all, how HBOS-Lloyds TSB and Royal Bank of Scotland can achieve their promise that their lending and marketing of lending activity will be at the 2007 level, and, secondly, how all the banks can resume funding. We will bring forward proposals very soon indeed.

Secondary information