The Prime Minister and the Chancellor have this week announced new measures to bring stability to the banking sector and ensure the resumption of lending to families and businesses across the UK. Ann McKechin MP welcomed this further action to ensure greater confidence in the economy.

With continuing global economic uncertainty, our priorities have been to prevent the collapse of the banking system; to stimulate the economy and to ensure we get lending going again.

Ann said:

We are comitted to taking national action to give real help to every household in our communities, families and businesses now and for the future. From the outset of the international crisis the UK Government has taken action to prevent the collapse of important financial structures without damaging delay. Today, with the help of the government, these institutions still exist and are still supporting those who wish to own their own home. If we had taken the advice of the Governments critics, this would not be the case.

Around the world it is clear that only Governments have the financial clout to stave off the lack of money flowing in the financial system. Failure to rescue, then control the actions of the banks upon which we all depend is simply not an option.

That's why this week we announced further measures, not only to boost support for the banking sector, but to safeguard the millions of jobs that will be put at risk if the continuing difficulties in the financial system are not challenged.

These are comprehensive measures focused on one purpose: increasing the amount of lending that is available to families and to the businesses who are the backbone of our country and who want to invest and create jobs.

This announcement is designed to address the barriers that are preventing UK banks from expanding their own lending.

The Government intends to negotiate with each bank a lending agreement, to cover lending made available to businesses and people.