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The Economy

That is why we are not doing that. In fact, we are increasing the investment over the next two years by £2 billion in Scotland, because we think it is right to increase investment in Scotland, in Scottish jobs and in support for training and for services in every corner of the country. Returning to the Turner report, we will issue a White Paper which sets out further proposals. As the shadow Chancellor said, we need banks to be boring again, we need banks to get back to basics, and we need bankers to stop behaving like masters of the universe. The shadow Chancellor would have us believe that his party would have been more likely to prevent these problems in the first place. I want to test that idea and show what astonishing nonsense it is. The idea that the Conservatives would have proposed stronger international regulation of the financial system in Europe or globally is a joke. While we have been working with European and global partners to agree reforms, they are busy pulling out of Europe. The idea that the Conservatives would have proposed stronger financial regulation here at home is even more of a joke. Here is what the shadow Chancellor said just before the credit crunch started:""Regulation . . . inhibits enterprise. For example, speak to any business in financial services—from the largest investment bank to the smallest independent financial adviser—and the threat of future regulation from Whitehall and Brussels is now their number one concern."" As for the shadow Chancellor’s comments about household debt, house prices and the increased lending in the mortgage market, what were the Conservatives calling for before the credit crunch started? They were calling for limits on house building, which would have pushed house prices up further, a cut in stamp duty, which would have pushed house prices up further still, and an end to mortgage regulation altogether. The fact is that the Opposition fought against all our regulation. Their policies would have made the problem worse.