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City must share blame - Osborne City must share blame - Osborne
(about 2 hours later)
Shadow chancellor George Osborne is to tell the City it must bear part of the cost and blame for the current financial crisis affecting the UK.Shadow chancellor George Osborne is to tell the City it must bear part of the cost and blame for the current financial crisis affecting the UK.
In a Conservative conference speech, Mr Osborne will say a future Tory government would always support and encourage the financial sector.In a Conservative conference speech, Mr Osborne will say a future Tory government would always support and encourage the financial sector.
But he will warn that the Tories would not ask hard-working families to subsidise the failures of the City.But he will warn that the Tories would not ask hard-working families to subsidise the failures of the City.
Mr Osborne will also pledge to end the country's "dependence on debt".Mr Osborne will also pledge to end the country's "dependence on debt".
'Grave problems''Grave problems'
In his speech, Mr Osborne will talk of the "grave problems our country faces" and "what we can do to pull ourselves out".In his speech, Mr Osborne will talk of the "grave problems our country faces" and "what we can do to pull ourselves out".
He will tell Tory representatives in Birmingham: "I am not going to blame everything on the bankers alone. But nor am I going to excuse them of their responsibility, or allow them to think that things can carry on as before.He will tell Tory representatives in Birmingham: "I am not going to blame everything on the bankers alone. But nor am I going to excuse them of their responsibility, or allow them to think that things can carry on as before.
"I am not going to do what the left has done, and use the crisis as an excuse to abandon the free-market economy that has made our country more prosperous."I am not going to do what the left has done, and use the crisis as an excuse to abandon the free-market economy that has made our country more prosperous.
The credit has dried up, the engines of the economy have stalled, the party is over George OsborneShadow chancellorThe credit has dried up, the engines of the economy have stalled, the party is over George OsborneShadow chancellor
"But nor am I going to pretend that the crisis doesn't raise the most profound questions about our financial system and how we regulate it."But nor am I going to pretend that the crisis doesn't raise the most profound questions about our financial system and how we regulate it.
"I am not going to claim that this problem only exists in Britain or that it is all the fault of the current government."I am not going to claim that this problem only exists in Britain or that it is all the fault of the current government.
"But nor am I going to let them forget who sat there in the Treasury for 10 years while the regulation failed, the debt soared and no one called time on the 'age of irresponsibility'.""But nor am I going to let them forget who sat there in the Treasury for 10 years while the regulation failed, the debt soared and no one called time on the 'age of irresponsibility'."
'Different approach''Different approach'
He will accuse the government of allowing consumers to rack up "more than a trillion pounds of mortgages and credit card bills and households debts "without stopping to think what would happen if the credit dried up".He will accuse the government of allowing consumers to rack up "more than a trillion pounds of mortgages and credit card bills and households debts "without stopping to think what would happen if the credit dried up".
"We built an economy on the engines of finance and housing and government spending, and the government never stopped to think what would happen if the engines stalled. Now the credit has dried up, the engines of the economy have stalled, the party is over.""We built an economy on the engines of finance and housing and government spending, and the government never stopped to think what would happen if the engines stalled. Now the credit has dried up, the engines of the economy have stalled, the party is over."
He will say the country needs the "wholly different approach," outlined in a 40-page report entitled Reconstruction: Plan For A Strong Economy.He will say the country needs the "wholly different approach," outlined in a 40-page report entitled Reconstruction: Plan For A Strong Economy.
The document outlines immediate help for people struggling with the credit crunch, such as a "fuel stabiliser", so fuel duty is cut when oil prices rise.The document outlines immediate help for people struggling with the credit crunch, such as a "fuel stabiliser", so fuel duty is cut when oil prices rise.
But it also sets out long-term reforms, such as giving the Bank of England the power to take over failing banks as an alternative to nationalisation, to "tackle bubbles before they emerge".But it also sets out long-term reforms, such as giving the Bank of England the power to take over failing banks as an alternative to nationalisation, to "tackle bubbles before they emerge".
"We will bring fiscal responsibility to our government. And we will bring financial responsibility in our economy. We will make sure that this mess never happens again," Mr Osborne will tell delegates."We will bring fiscal responsibility to our government. And we will bring financial responsibility in our economy. We will make sure that this mess never happens again," Mr Osborne will tell delegates.
'Complacency' warning'Complacency' warning
HAVE YOUR SAY Conservative or Labour are the same because neither party saw this disaster coming, none of us was really aware of the power of the banks and their global interdependence and interaction.Carla Thompson, Rugeley Send us your comments
The Conservatives are under pressure to seize back the initiative from Labour on the economy, after Gordon Brown's well-received speech at Labour's conference last week, in which he said it was "no time for a novice" to take over.The Conservatives are under pressure to seize back the initiative from Labour on the economy, after Gordon Brown's well-received speech at Labour's conference last week, in which he said it was "no time for a novice" to take over.
A year ago, George Osborne helped kick-start the Conservatives' current revival when he unveiled the party's pledge to cut inheritance tax - and his speech on Monday will be watched for signs the party is preparing to pull off a similar tax coup.A year ago, George Osborne helped kick-start the Conservatives' current revival when he unveiled the party's pledge to cut inheritance tax - and his speech on Monday will be watched for signs the party is preparing to pull off a similar tax coup.
But aides were stressing the main thrust of the address would be debt - and the Tories' economic reconstruction plan, published on Monday.But aides were stressing the main thrust of the address would be debt - and the Tories' economic reconstruction plan, published on Monday.
The party is going out of its way to stress its credentials as a "government-in-waiting" and hit back at opposition claims that it lacks heavyweight policies.The party is going out of its way to stress its credentials as a "government-in-waiting" and hit back at opposition claims that it lacks heavyweight policies.
Mr Osborne will hit back at the prime minister's claim the Tories lack economic experience.Mr Osborne will hit back at the prime minister's claim the Tories lack economic experience.
"He says he's the candidate of experience. Well I think we've all had enough of the Gordon Brown experience," Mr Osborne will tell party activists."He says he's the candidate of experience. Well I think we've all had enough of the Gordon Brown experience," Mr Osborne will tell party activists.
The speech comes after shadow chief secretary to the Treasury Philip Hammond warned the economic downturn could be "more grave here than in the US" in the medium-term because of the government's policy failures.The speech comes after shadow chief secretary to the Treasury Philip Hammond warned the economic downturn could be "more grave here than in the US" in the medium-term because of the government's policy failures.
He told a fringe meeting: "I do not share in the view that the situation in the UK is not as grave as in the US.He told a fringe meeting: "I do not share in the view that the situation in the UK is not as grave as in the US.
"There are many factors that suggest the situation in the UK in the medium term may very well be more serious.""There are many factors that suggest the situation in the UK in the medium term may very well be more serious."
Tory leader David Cameron warned party activists as the conference opened to avoid "complacency".Tory leader David Cameron warned party activists as the conference opened to avoid "complacency".
Mr Cameron has vowed not turn the credit crunch into a political football, and has said he will back government banking reforms when Parliament reconvenes next month.Mr Cameron has vowed not turn the credit crunch into a political football, and has said he will back government banking reforms when Parliament reconvenes next month.
He is due to address the conference on Wednesday.He is due to address the conference on Wednesday.