Thursday 31st January 2008
There are five ways in which the UK economy could be made secure in the long term, according to HM Treasury.
A new consultation document published by the government body addresses issues relating to financial stability and the protection of consumer deposits.
One method of ensuring account balances remain safe is to put in place sufficient compensatory measures, the report suggests.
However, the dual approach of both minimising the likelihood of a financial services provider encountering illiquidity and reducing the impact of any such event is also endorsed.
Chancellor of the exchequer Alistair Darling comments: "Recent months have seen a period of sustained turbulence and instability in global financial markets."
"A response to these episodes requires action, not only from the UK authorities, but also from international firms and institutions," he adds.
Further suggested methods of ensuring long-term security include an overall strengthening of the UK economy and of the Bank of Englands ability to respond to any crisis.
Chancellor Darling today revealed that his first Budget is to be delivered on March 12th.
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