What does £140bn buy you these days?

Figures recently released by the Office of National Statistics show that so far the government have spent over £140bn bailing out banks.

That massive investment means that there will inevitably be less public money available for things like education and health over the coming years.

Since the poorest rely most on these public services (having no option to purchase them privately), it’s clear that the excessive risk taking of the very rich will most affect poor people. This cannot be allowed to go unchallenged. 

£140bn is a lot of money, even by public sector standards. It’s more than we spend on the entire benefits system, more than the combined spending on health and schools and and twenty times the amount spent on housing.

Investment on that scale usually comes under intense scrutiny, but aside from debate about pay and bonuses, there’s been surprisingly little debate about the public benefit this money has delivered.

With the Treasury currently consulting over plans for (very limited) reform on the banking system, we have an opportunity to send a message to politicians of all Parties. The Treasury’s banking reform white paper (Reforming Financial Markets) is currently open for consultation until the 30th September.

We have a chance to make a real difference, but only if we do something about it – so please respond, on behalf of an organisation or as an individual or both!

And just in case you need some further food for thought, here are a few facts to chew on:

• 3 million people in the UK do not have a bank account
• The poorest in society spend around 4 times more of their money repaying loans than affluent people
• There are approximately 165,000 users of illegal money lenders in the UK
• US Community Reinvestment legislation has led to $bns of investment in poor communities and more responsible banking practices
• Poor households pay an estimated £1,000 extra per year for basic essential services like electricity, financial services and telecommunications
• The Banking Reform White Paper mentions ‘competition’ 100 times but ‘fairness’ only twice

Find out how to respond – Take Action Now!