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Economy top of the bill as queen unveils govt plans
(Agencies)
Updated: 2008-12-03 14:36 LONDON -- Queen Elizabeth will announce the government's legislative programme for the next year Wednesday, with the emphasis likely on bolstering the economy against further mayhem.
Ministers are under heavy pressure to introduce measures which would force Britain's banks, some of which are now part state-owned, to do more to help businesses weather the financial storm. This follows a year of turbulence in Britain's banking sector which saw the near-collapse of Northern Rock, nationalised in February; last week's de facto nationalisation of the Royal Bank of Scotland and the looming forced takeover of HBOS by Lloyds TSB. Prime Minister Gordon Brown has reportedly toned down other planned measures which could have further damaged retailers already bruised by the credit crunch through restrictions on sales of alcohol and tobacco, for example. The tradition of the monarch delivering a speech outlining the government's legislative priorities in Parliament dates back to at least the 16th century and marks the start of a new parliamentary session. The Queen's Speech comes against the gloomiest backdrop since Labour came to power under Tony Blair in 1997. In October, Bank of England governor Mervyn King warned it was "likely" Britain was entering recession and the unemployment rate jumped to an 11-year high of 5.8 percent in the three months to September, official figures said. Brown delivered an effective curtain-raiser for the Queen's Speech in May, several months before the market crashes in September and October which put the financial crisis at the top of the world political agenda. Even then, he stressed the need for steps to boost Britain's economy through, for example, cutting employment regulation, labour market flexibility and simplifying Britain's corporate tax regime. But these could now be revised in the new economic climate, with Chancellor Alistair Darling, who unveiled a 20-billion-pound economic stimulus plan last Monday, indicating that radical steps may be necessary. "You'd be very foolish indeed to say, 'Well that's job done'," Darling told Sunday's Observer newspaper."You know this is something that needs constant attention." Brown's government is facing calls from MPs from across the political divide to ensure that banks, particularly those which have been saved by nationalisation packages, help small businesses facing hard times. Some 35 MPs have signed a parliamentary motion calling on the government to use emergency legislation if necessary to ensure banks pass on the latest 1.5 percent interest rate cut to three percent to customers. |
