Bank of England right to cut interest rates, but Government still not doing enough

12.54.49pm GMT Fri 6th Feb 2009

Following the Bank of England Monetary Policy Committee's decision today to cut interest rates to 1% Theo Butt Philip, Lib Dem Parliamentary Candidate for Bridgwater and West Somerset said:

"The Monetary Policy Committee 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."