Tories and Lib Dems back £37bn handout

Robert Thickett
13-Oct-2008
Both the Conservative Party and Liberal Democrats have backed the government's £37bn handout to three of the UK's largest banks today.
David Cameron, the leader of the Tories, says it was a necessary move but criticised the Labour Party for setting a "poor example" with it's own track record of spending and debt.

He says: "It's the day the bills come in for a decade of too much borrowing."

The leader of the Liberal Democrats Nick Clegg was also supportive of the move but called for interest rates to be further lowered on the back of it.

He also reiterated his party call for further tax cuts to free up cash for tax payers on low to middle incomes.

Speaking to the BBC this morning, he says calls for tax increases in the current climate were "mad".