Evolutionary rather than revolutionary

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D Stephenson’s letter (Mail, May 5), provided interesting information on the proposals for a revolution in the banking system, which have been published on the Positive Money website.

Fundamental changes are recommended which are controversial and Government ministers are aware of them.

However, Britain faces massive problems as a result of the banking crisis, the huge national debt, the budget deficit and the slow-motion “train crash” which is taking place in the European Union.

Greece, Ireland and Portugal are all bankrupt so they face long periods of spending cuts and austerity.

They are also dependent on colossal taxpayer-funded financial handouts from the faceless bureaucrats in Brussels and the International Monetary Fund.

Spain could be next and Italy also has problems.

And the UK is not immune from the contagion.

Cuts in public sector spending are inevitable and the teachers and the rail unions are threatening crippling strikes because they want to protect their standard of living.

Other public sector workers will no doubt follow suit.

But without the cuts Britain will also have to go cap in hand to the EU and the IMF for financial assistance.

This would result in cuts being forced on us which would push our economy back into a recession. So even more cuts would then be needed, which would create a vicious cycle of decline.

The banking revolution proposed by Positive Money deserves careful consideration, but I expect the Government to make changes to the banking system which are evolutionary rather than revolutionary.

Ministers are already having to modify their plans for fundamental changes in the schools and hospitals, and a revolution in the banking system at this turbulent time is unlikely.

Even if the Positive Money proposals are sensible, which is not certain.

Jim Allan,

Hartlepool.