Cable slams government’s &quotutter confusion&quot

Liberal Democrat shadow chancellor Vince Cable has claimed that UKFI’s strategy is &quotschizophrenic&quot and &quotdeeply damaging&quot.

This follows publication of UKFI’s annual report and its suggestion that it will be ‘challenging’ to sell taxpayer stakes in nationalised banks back to the private sector,

Cable said: &quotBrown, Darling and Mandelson pretend that UKFI is there to make the banks lend while Lord Myners says that it’s not a tool of public policy.

&quotUKFI tells us that it cannot interfere with the daily running of the banks but also believes it will be able to increase shareholder value. The two don’t add up, especially when UKFI cannot even define how its own performance should be measured.

&quotThis schizophrenic approach is deeply damaging and reflects the utter confusion at the heart of Government.

&quotIf all the taxpayer liabilities are taken into account, the current loss against RBS and Lloyds looks closer to £20 billion than the £11 billion UKFI appears to be saying.

&quotThere is no justification for an early sell off. UKFI should ensure that any Government attempt at a quick sale before an election is stopped in its tracks.

&quotTaxpayers bailed the banks out and in return, UKFI must start to act in the public interest and make it clear to the banks they own that they should operate in the same way.&quot