View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Business
24 May 2012updated 22 Oct 2020 3:55pm

The new regulator is already caving in to the banks

Charging for current accounts in credit would be an attack on citizens and insult to savers.

By Chris Leslie

 

First the taxpayer has to bail out the banks. Now it seems that the unsuspecting current account customer could be taken for a ride, as the bankers scour around for ways to rebuild their balance sheets. 

How disappointing, therefore, that the new head of the Prudential Regulation Authority – the Treasury’s new super-regulator – should give a speech suggesting that “free banking” needs to end as the only way to protect high charges for overdrafts and other bank products.

At a time when bonuses and executive pay remain firmly stuck on a different planet, the public will be aghast at any attempt to squeeze their current accounts with a new fee. We need to have fair play on fees and charges and continue charge-free bank accounts for those who rely on these services. Arguing against exorbitant overdraft charges doesn’t mean we need to hit those customers who stay in the black – modest savers or the working population balancing their accounts each month.

The banks should look be more concerned with changing their remuneration practices and putting their customers first. There are over 47 million current accounts in the UK. If their holders are now to be charged for the privilege of using a debit card, or for basic chequing services, it would be a major blow to the entire population. Many people will have already been approached by their banks to pay a £15 or £20 per month charge for “additional” services, such as mobile phone insurance. Expect this to become the norm if the banks get their way.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Just when the banks are poised to hit consumers with these new fees, the last thing we need is a financial regulator who is actively encouraging charges for current accounts. It is simply unacceptable to erode free banking and free in-credit deposit accounts – especially when millions are giving the banks their money, which can then generate profits while being held centrally. A current account is today an essential part of daily life, a utility that is essential for getting by in the modern world. We need to defend this basic right and fight for free in-credit banking. We must not give way to these false pressures from the banks.

Chris Leslie is Shadow Financial Secretary to the Treasury and MP for Nottingham East

Content from our partners
The promise of prevention
How Labour hopes to make the UK a leader in green energy
Is now the time to rethink health and care for older people? With Age UK

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU