Keeping you updated.

The culture in some parts of the financial services industry that was allowed to grow up in the years before the crisis is unacceptable. A long costly public inquiry is not the right answer. It would take months to set up and years to report – but we know what went wrong. We can’t wait until 2015 or 2016 to fix it. We need a new culture of responsibility in banking. We need a proper, parliamentary inquiry with real powers to hold evidence under oath. Then we can get some answers in the next few months instead of waiting for a decade after the scandal to come up with any answers. This is the right approach because it will be able to start immediately, it will be accountable to Parliament, and it will get to the truth quickly so that we can make sure this can never happen again. Labour’s failure to regulate the banks in the boom years cost this country billions. The behaviour of some in the financial services has damaged the reputation of an industry that employs hundreds of thousands of people and is vital to the economic prosperity of the country. We’re changing the failed regulation; we’re reforming the banks; now it’s time to deal with the culture that flourished in the age of irresponsibility and hold those who allowed it to do so to account. Other lines LIBOR All this happened under the last Labour Government, and under the failed system of light touch regulation designed by Ed Balls. Even Labour’s Deputy Chief Whip in the Lords, Lord Tunnicliffe, has admitted that it was the last Labour Government’s “fault”. One of the first things this Government did was to start reforming the regulatory system from top to bottom, getting rid of the whole tripartite system. There is a bill currently in Parliament that abolishes the FSA and creates a tough new Financial Conduct Authority which will focus razor-like on market abuse and protecting consumers. The British people want to see two more things. That bankers who act improperly are punished, and that we learn the broader lessons of what happened in this particular scandal. On proper punishment, the Serious Fraud Office are looking at whether there are any criminal prosecutions that can be brought, and they are using the full force of the law in dealing with this. We have also asked Martin Wheatley, the Chief Executive designate of the Financial Conduct Authority, to review LIBOR, including looking at the adequacy of the UK’s current civil and criminal sanctioning powers with respect to financial misconduct, and market abuse with regards to LIBOR. Mr Wheatley has agreed to report this summer so that the Financial Services Bill currently before Parliament or the future legislation on Banking Reform can be amended to give our regulators the powers they clearly need. On the broader lessons, the Government has announced it will establish a full parliamentary committee of Inquiry involving both Houses chaired by the Chairman of the House of Commons Treasury Select Committee. This Inquiry will take evidence under oath have full access to papers, officials and Ministers – including Ministers and Special advisers from the last government and it will be given, by the government, all the resources it needs to do its job properly. On the specific question of Bob Diamond: Bob Diamond’s resignation is the right decision for Barclays, and it is the right decision for the country. We need Barclays to focus on lending to our economy, not to be distracted by this argument about who should be in charge. We hope it’s a first step to a new culture of responsibility in British banking. EU referendum The Prime Minister is clear that an in-out referendum is not the answer right now. Instead we should first set out how we want to change our relationship with Europe and then as the end point becomes clear we should consult the British people, either in a general election or a referendum. He will set out more details of the Conservative Party's position in the Autumn. Children’s care homes There are good children’s homes and excellent care workers but it is clear that far too many of the most vulnerable children in society are being exposed to harm and danger. It is completely unacceptable that existing rules are simply being ignored and that frankly, some local authorities and homes are letting down children by failing to act as a proper ‘parent’.  We are setting out urgent, immediate steps to protect children in care and address all the weaknesses. These are big changes to a system which has been letting down too many children. The cost of care in a local authority children’s home is some £3,000 per resident week, and £2,600 in a private or voluntary home – so it is outrageous if they are not shielding young people from harm. We want to get rid of an ‘out of sight, out of mind’ culture which sees residential care as a last resort, instead of protecting vulnerable young people and giving them the best possible start in life. English and Maths education Labour increased spending by billions of pounds, yet a recent CBI survey showed that one in three employers are dissatisfied with school leavers’ literacy and numeracy skills, and 42 per have to provide remedial training. As a result of the changes we are making, every 16 to 19 year old will have the opportunity to undertake high quality study which will help students move on to skilled work or further or higher education. Young people will be able to take up valuable work experience opportunities. Students without a good pass at 16 in English and maths - the subjects most valued by employers - will have to continue to study those subjects to age 18. Dementia While there is no cure for dementia, we know that early diagnosis and early intervention can help people take control of their condition and plan for the future. Some areas are doing fantastic work but there is still too much regional variation. That is why we are driving forward measures to improve the quality of memory services, including work to increase the number of accredited memory services and work to help local commissioners map the need in their area. We have set out our goal of making this country a world leader in dementia. There is much to do to move further and faster, but with the number of memory services increasing along with local investment, we are heading in the right direction. Afghanistan soldier deaths We are deeply saddened by the appalling news that three British soldiers have been killed in Afghanistan. Our hearts go out to their families. These brave soldiers were demonstrating great courage to help prevent Afghanistan once again become a haven for international terrorists and therefore to help keep us safe here in the UK. The suspected perpetrator is in custody and we will do everything in our power, with the Afghan National Security Forces, to ensure that justice is done. This tragic incident again demonstrates the very real risks that our brave soldiers face every day. We will do everything possible to find out how this happened, and learn any lessons for the future. Army battalions We don’t comment on leaked documents. The Chief of the General Staff  has held a number of discussions about the restructuring of the Army with senior officers. We have always been clear that more than one set of criteria is used in determining the future shape of the Army as it is restructured to become an integrated regular and reserve force by 2020. These are necessary changes due to the tough decisions which had to be made to tackle the multi-billion pound Defence deficit inherited from the last Government but they will not compromise the mission in Afghanistan. There are robust procedures in place, regularly used by the Army chain of command, to brief soldiers swiftly, thoroughly and sensitively. Policing report This report makes it clear that the frontline of policing is being protected overall and that the service to the public has largely been maintained. The proportion of officers on the front line is increasing, the number of neighbourhood officers has gone up, crime is down, victim satisfaction is improving and the response to emergency calls is being maintained.  While there are particular challenges in three forces, we know that the vast majority are rising to the challenge of reducing budgets while protecting service to the public. Border checks during the Olympics We are fully prepared for the busy Olympic period and will be implementing our well rehearsed plans. This includes staffing all immigration desks at key ports whenever necessary during the peak Olympic and Paralympic arrivals period. Benefit sanctions New sanctions will be explained to job seekers at the start of their claim as part of a ‘deal’ between the Government and the unemployed. The Government will pay benefits and jobseekers will in turn prove that they are doing all they can to return to the job market. People will now know without a doubt that if they don’t comply with the rules, they will not get their benefit. We need a sanctions regime that is clear and robust.