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22/09/2008
'Bumpy Road' Ahead, Chancellor Warns In Speech
Chancellor Alistair Darling has warned the UK economy is to face a 'bumpy road' ahead while tighter regulations are put in place to stabilise the banking system.
During his keynote speech to the Labour Party Conference in Manchester, the Chancellor also told the delegates of "unprecedented" challenges facing Britain, saying, "these are very uncertain times".
Referring to the "economic challenges" taxpayers have faced in recent days and months, he added that one thing he was certain about was "the right Prime Minister, the right team and the right polices" were all in place to help the country through them.
He said: "These are extraordinary, turbulent times. A crisis, which has rocked the financial institutions around the world on top of huge, rises in oil, food and commodity prices.
"A twin shock to the global economy which has hit every country in the world. A financial system which will never be the same."
He also said his main priority was to stabilise the banking system, and promised he will avoid any "knee jerk" reactions.
Mr Darling went on to say the £100 billion cash injection promised for the banking system would take time to work through.
"We are putting in place, both here in the UK and internationally, the tougher financial regulation no one can doubt we need," the Chancellor said. "It is why I will introduce a new banking reform bill in the Commons in a fortnight - strengthening the supervision of the banking system, making it easier to intervene if a bank gets into trouble, giving new powers to the regulators."
New measures to give added protection to savers were also pledged, and Mr Darling said he asked the new chairman of the financial Services Authority (FSA) to urgently review what measures were needed to improve the system.
He added: "It's not a question of light-touch regulation against heavy-handed regulation. It's about effective regulation.
"I can promise that wherever weaknesses are found in the financial system - whether in the powers of Government, the Bank of England or the FSA, I will take steps to deal with it."
During his speech Alistair Darling vowed to crack down on the culture of "huge bonuses which have distorted the way decisions are made".
The Chancellor added: "It's essential that bonuses don’t result in people being encouraged to take on more and more risk without understanding the damage that might be done, not just to their bank, but to the rest of us in the wider economy."
(JM)
During his keynote speech to the Labour Party Conference in Manchester, the Chancellor also told the delegates of "unprecedented" challenges facing Britain, saying, "these are very uncertain times".
Referring to the "economic challenges" taxpayers have faced in recent days and months, he added that one thing he was certain about was "the right Prime Minister, the right team and the right polices" were all in place to help the country through them.
He said: "These are extraordinary, turbulent times. A crisis, which has rocked the financial institutions around the world on top of huge, rises in oil, food and commodity prices.
"A twin shock to the global economy which has hit every country in the world. A financial system which will never be the same."
He also said his main priority was to stabilise the banking system, and promised he will avoid any "knee jerk" reactions.
Mr Darling went on to say the £100 billion cash injection promised for the banking system would take time to work through.
"We are putting in place, both here in the UK and internationally, the tougher financial regulation no one can doubt we need," the Chancellor said. "It is why I will introduce a new banking reform bill in the Commons in a fortnight - strengthening the supervision of the banking system, making it easier to intervene if a bank gets into trouble, giving new powers to the regulators."
New measures to give added protection to savers were also pledged, and Mr Darling said he asked the new chairman of the financial Services Authority (FSA) to urgently review what measures were needed to improve the system.
He added: "It's not a question of light-touch regulation against heavy-handed regulation. It's about effective regulation.
"I can promise that wherever weaknesses are found in the financial system - whether in the powers of Government, the Bank of England or the FSA, I will take steps to deal with it."
During his speech Alistair Darling vowed to crack down on the culture of "huge bonuses which have distorted the way decisions are made".
The Chancellor added: "It's essential that bonuses don’t result in people being encouraged to take on more and more risk without understanding the damage that might be done, not just to their bank, but to the rest of us in the wider economy."
(JM)
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