A depressing state of affairs

With annual net borrowing still at an astronomical £120.6bn, partly because of the Government’s inability to deliver anticipated levels of economic growth, and public debt now at £1.2 trillion, this decline will not be reversed overnight – the Right Reverend Justin Welby’s assertion.

And this is before tomorrow’s GDP figures which will reveal whether Britain has slid into an unprecedented triple dip recession – a verdict which could make or break George Osborne’s reputation.

Yet, while some will inevitably lament the Church of England leader’s intervention, it should be noted that the Archbishop has vast business acumen and has been a key member of the Parliamentary Commission on Banking Standards.

Even though he had the humility, in contrast to his predecessor, to say that he did not have the answers to the financial crisis, his observations are still pertinent to the collapse of Yorkshire-based HBOS before it became part of the Lloyds Banking Group five years ago at the height of the financial collapse.

His assertion that “we cannot go on with banking being essentially something that people drift into” can be construed as a criticism of the disgraced Andy Hornby who cut his teeth at Asda before joining HBOS. Despite his banking inexperience, he was chief executive when the bank collapsed. Now head of high street bookmakers Coral, the Yorkshireman has still to respond to the devastating conclusions of the banking commission.

Most will also concur with the Archbishop when he advocates smaller banks that operate at a more “local level”. This was the case until expansionists lost touch with reality in the pursuit of profit. After all, it is significant that Yorkshire’s many building societies have been relatively immune to the financial turmoil that continues to cause so much angst.

As such, the Government would be wise, on this occasion, to heed Bishop Justin’s considered warnings on banking. For, unless it does, Britain’s longer-term recovery will take even longer than forecast.