PENSIONERS and others in West Somerset who had managed to put away money in savings would have to suffer a loss of income for the greater good of the country, the district’s Lib Dem Parliamentary candidate said today.
Theo Butt Philip (pictured) was speaking after yesterday’s Bank of England Monetary Policy Committee’s decision to cut interest rates to a record low of one per cent.
Mr Butt Philip, who lives in Wells, said: “The bank was right to cut interest rates.
“It is a desperate, but necessary, measure.
“The current economic situation is a very difficult one, and this cut will not help savers.
“However, for the sake of the economy as a whole, it is imperative that we get people spending again.
“The interest rate cut alone will not be enough to see us through these difficult times.
“The Government must do everything it can to increase the flow of credit.
“That means temporarily nationalising those banks which are already majority owned by the taxpayer and directing them to increase lending.
“Furthermore, the Government should bring forward investment in capital programmes and in projects to protect the environment.
“By building more social housing, insulating our current housing stock, and investing in railways, the Government could create jobs, stimulate the economy, and create assets which will be of real long-term value to the country.”