Debt to society

Major milestone for Lloyds

NEARLY 10 years after the emergency bailout of Northern Rock as the credit crunch brought the global economy crashing down, the return of Lloyds Banking Group to private ownership represents a milestone moment.

Even though the £20.3bn of public money pumped into Lloyds has resulted in a profit of £894m finally being accrued, it has come a cost. Key public services have been scaled back, and living standards squeezed, because of those banks which let borrowing spiral out of control.

It’s not over yet. Other financial institutions are taking even longer to recover – an indication of the scale of this crisis and the reason why successive Chancellors have had to bide their time so taxpayers receive a modest return for having been held to ransom in this manner.

Yet, with the Tories on the side of responsible capitalism, today’s manifesto should include meaningful measures to hold this sector to account in future – it is frankly insulting to many families that so few banking chiefs paid the price for their irresponsibility.

Equally, the banks need to be reminded of their wider debt to society. Though digital technology is transforming the financial sector, the rate of branch closures is troubling because of the knock-on consequences for town centres and consumers alike. The Yorkshire Post has suggested that banks should be required to set out details of alternative provision for at least five years whenever they do propose to shut a branch. A decade on, it’s a small price to pay and the very least that they can do.