The government is no longer able to put off making tough choices in relation to bank lending, the Liberal democrat party has asserted.
In a statement, the party claimed that the Conservative party's recent suggestion of a full-scale national loan guarantee scheme could potentially expose the taxpayer to "vast, open-ended liabilities".
The party stated that while there was undoubtedly a role for such schemes, it should be clear that they were not a mechanism for shifting business risk on to the shoulders of the public without allowing them to have proper control.
And on the subject of bank lending, the Liberal Democrats noted: "If the banks are on strike and will not lend, one of the large banks now partially nationalised but run at a very distant arms length will have to be brought fully within government control with full accountability to the taxpayer to ensure that lending is maintained to sound businesses."
Meanwhile, the Telegraph has reported that it understands that Gordon Brown and the chancellor of the Exchequer Alistair Darling will reject the Conservative's proposals.
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