In the recent Independent Commission on Banking, blue prints have been drawn up that might, in the future, prevent the banks from making the risky investments that helped propel Britain into its current economic slump.
The concept of splitting high street banking from investment banking to protect the tax payer’s money has been the main focus for many. This would effectively make these two areas of banking separate, governed by two separate boards, and would theoretically make high street banking more secure.
But will it work? The Lincolnite visited the the Carlton Centre in Lincoln to ask people what they thought.
Lizzie Cooling, 27
“It seems a good idea. Obviously times are hard so if you have got any savings you don’t want them to get thrown away, especially if you have been saving money yourself then to lose it without you doing anything wrong. To be honest I don’t know that much about it and I don’t know how it would work, but you’d hope that if this is what they say is going to happen, then the banks should be a safer place to put your money.”
Karen Goodwin, The Gift Room (Carlton Centre)
“I think it may be a problem for small businesses. I think the banks are going to restrict the amount of lending they do. Anything slightly high risk is going to get an answer of no, bigger business will be ok to a degree but smaller businesses are going to suffer. We’re ok, we don’t need to borrow money at the moment but if we were in that situation I don’t think we would get an answer of yes. New businesses are going to have a real problem.”
Philip Davis, 20
“Something definitely needs doing about it. The banks are too greedy, especially with their bonuses; they still get bonuses when the rest of us are losing out. I lost loads of money myself in investments, and so did my parents. But if it will work, then I think it will be a good idea, anything to make banking safer.”
Matt Bollington, 26
“I really don’t know, you hope they know what they are doing. The banks need to make their money up so they can give us more but you don’t want a bank that needs to be bailed out by us. It’s a tricky one. But if it could work then I am definitely for it.”
Matt Edwards, 24
“Yeah I think it would be a good idea. I think something has got to change, because with the bank crisis people have lost money. I think that it helps to have two different markets it gives people a choice. Will it work? We will just have to see I guess.”
The Lincolnite welcomes your views. All comments are reactively-moderated and must obey the house rules. Please stay on topic and be respectful of other readers.
Lincolnshire residents are already feeling the impact of the rise in energy bills, which could soar to over £4,000 next year, with some saying they will just cancel their direct debits.
Energy bills for a typical household could hit £4,266 next year, experts warned. The higher estimate means the average household would be paying £550 a month, instead of £164 a month currently.
Two Lincolnshire MPs said they are pleased with the support being offered by the government so far, while a third sounded the alarm for extra support.
This comes after Cornwall Insight criticised regulator Ofgem’s decision to change the price cap every three months instead of six, as higher wholesale prices are also forecast. However, Ofgem said no forecast for next year could be “robust” at this stage and had “limited value”, according to the BBC.
In May, a £400 energy bill support was announced which was calculated on the basis of Ofgem’s prediction at the time that the price cap was likely to rise to £2,800, but experts now believe this will be higher. Here’s an explainer on how to access the energy grant here.
The Don’t Pay UK movement is demanding a reduction in energy bills to an affordable level, saying: “We will cancel our direct debt from October 1, if we are ignored. We will take this action if pledges reach one million by then.”
This sentiment was echoed by The Lincolnite readers, including Laura Jayne Coupland who said: “I will just cancel my direct debit because it’s an absolute joke. It’s about time the government intervened properly, if you care about the people and the economy so much, why are you allowing it? Let me guess, you will benefit from it.”
Kayleigh Dawson said: “I’ve cancelled my energy direct debits and will pay monthly what I can afford to. I’m more conscious on how much money I’m spending on outgoings and limiting them where possible.
“But, in complete honesty, who is not worried about the ever rising cost of just living and surviving? We shouldn’t be going from being comfortable to scraping by because those in powerful positions want second and third homes.”
Karl Anders said: “People seem to have no spare cash nowadays. My print business has gone from £108k during the pandemic to £5k this year. On top of this, we’ll probably be paying £300-£400 a month energy soon based on already thrifty usage.
“I don’t think many people understand how bad it’s going to get with food price rises, etc. There is a “I’ll put a jumper on” mentality currently, which will soon be shattered in October.”
Michael Basford said: “You do what our grandparents did, you cut your cloth. Our grandparents generation were amazing and very pragmatic when it came to making a little go far.
“Make do and mend as my grandmother use to say. So people should be planning for the worst case scenario now, not when it’s here and then too late. Own it.”
Peter Sykes said: “It’ll impact me by not using my heating. Probably not being able to pay my bills. Not able to buy food. Probably lead to a lot of people needlessly dying.”
Karen Price said: “Just had a bill for gas and lecky just under £3k for 8 months! British Gas put an estimate on the bill saying it will be just under £6k for 12 months next year.
“I’m not holding my breath for the October increases and tied myself in to a fixed not variable.
“Since my last supplier went bankrupt and it’s taken oven 8 months for British Gas to get us fully swapped over, it’s already increased tariff twice.
“Five years ago I was paying under £160 per month for both utilities. £2k per year, it’s now getting beyond a joke, considering three family members no longer live at home.
Ady Brodrick said: “Rising costs are a terrible thing for people, however with a change in lifestyle and some education the cost could be reduced. Sometimes it is situations like this that makes us change.”
Dennis Murray said: “Not quite sure how all this happened, except for a bit of rumouring. The country is definitely not going to survive under the current charges.
“Businesses are going to go to the wall, people on low wages are going to end up on full-time benefits, the countries tax recipes will collapse.
“There WILL be anarchy on our streets, people who have never demonstrate will now do it, crime will increase, people will cancel house, car, life, home insurance because they will not be able to afford it.
“Pensioners and other vulnerable people will turn their heating down, and some will die. Transport and personal cars will be a no no. I could go on and on. But this is reality, and what we are facing if something is not done now.”
Lincolnshire County Councillor Colin Davie said there were challenging times ahead for people on low incomes due to rising energy costs and political instability.
He said successive governments “of all colours” had “simply failed the British public on energy”.
“They haven’t planned, they haven’t invested, they haven’t built the infrastructure. So rising energy costs, which we should have been protected, are now absolutely under the whims of other people.”
He said there needed to be a balanced energy mix including solar, nuclear, wind, but that the current infrastructure was disconnected and “not secure”.
And he warned it was only going to get worse with reserves from Norway drying up and other countries having to make drastic changes over how much they export.
Lizzie Cooling, 27
Karen Goodwin, The Gift Room (Carlton Centre)
Philip Davis, 20
Matt Bollington, 26
Matt Edwards, 24
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