Battling Darling turns on Turner

1 October 2009

Chancellor Alistair Darling used the Confederation of British Industry Scotland annual dinner in Glasgow last month to deliver an icy blast to his chief regulator's unfortunate views on the City of London and the financial services sector's place in the economy.

Referring obliquely to Lord Adair Turner, chairman of the Financial Services Authority, Darling said that in the previous few weeks there had been a lot of talk about the financial sector being too big.

"Some say we should cut it down in size," he told his audience. "To me, that is the wrong approach. We need a balanced economy building on the success of our other industries.

"Some 70% of the jobs in the financial sector are based outside London not just in banks but also in pensions, insurance, law and accountancy - all part of a critical mass of expertise that makes this country a world financial centre. We are not going to throw away that expertise and advantage."

The chancellor's view is, that with proper regulation and supervision by the government, the financial services sector will remain important both north and south of the border, as part of a strong and diverse economy.

Let's hope the regulator at least says amen to that.