The TaxPayers' Alliance (TPA) today criticised the Government for using taxpayers' money as an easy way out, and urged them to explore other solutions that would limit the amount of our money at risk. With taxpayers' money on the line, the TPA demands guarantees that our money will not be wasted or mis-spent. Now the Government has opted for the £50 billion injection plan, they must also consider big interest rate cuts, suspending mark to market regulations and making deposit protection more credible in order to limit the need for banks to use taxpayers' money.
Matthew Elliott, Chief Executive of the TaxPayers’ Alliance, said:
“The Government is using taxpayers’ money as an easy way out, and haven't fully explored other options that don't put £50 billion of our hard-earned cash on the line. With ordinary taxpayers' money at stake, they must put mechanisms in place to ensure that the money isn’t frittered away on excessive bonuses and to make sure that it is not wasted. The Government must now explore other options to reduce the amount of taxpayers' money the banks need, including making deposit protection more credible, suspending mark to market regulations and cutting interest rates. The Government say they have the interests of hard-working taxpayers at heart, now they need to prove it."