Government Backtracking On Banking Pledge - Cotter

12.00.00am GMT Thu 4th Dec 2003

Responding to reports that the Government is planning to default on its promise to create an independent payments regulator for the banking industry, Liberal Democrat Small Business Spokesman, Brian Cotter MP, said: "It is over three years since the Cruickshank Report identified excessive profits of up to £5billion per year within the banking industry and recommended the establishment of an independent payments regulator to ensure that small businesses and consumers got the best deal."

"Up until a few months ago, the Government were promising legislation to deal with this problem, but now it looks as though they are set to bring forward proposals which will lack the necessary teeth to crack down on the time it takes cheques and electronic payments to clear."

"It is unacceptable that delays are lining the pockets of the banks, at the expense of their small business customers."