Coventry and Warwickshire business leaders react to shock over bank bailout

Oct 24 2008

By Emma Ray

BUSINESS leaders in Warwickshire have reacted with shock to the Government's bailout package for banks. Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, says the £50 billion package must not be seen as a "magic wandf". She said: “This is an unprecedented move from our Government and from the Bank of England but we believe it is absolutely necessary. “We are in uncharted water at the moment and therefore it needed intervention – the like of which we have never seen before. “We were calling for an interest rate cut but for it to come in the form of a half-a-per-cent drop ahead of the official decision was unexpected – but, nonetheless, very welcome. “In terms of the Government rescue package, my only guard is that we do not want to see further taxation on ordinary businesses to raise the money to pay for this in the long run. “We have seen from our most recent Quarterly Economic Survey, that there are a series of burdens weighing heavy on companies of all sizes. We do not want to see that increased. "The ideal scenario now is a period of calm – to allow these measures to take their course and bring greater stability back to the banking system. “We have already seen the effects of the banking crisis spilling over into the ‘real’ economy and times have been extremely tight for many companies – not only in Coventry and Warwickshire, but across the country. “These measures cannot be a magic wand and nor should they be because nobody wants to see a quick-fire boom and then bust again. “This crisis seemed to happen very quickly but we have to accept that it is going to take some time to pull ourselves out of it.”