THE Government’s decision to bale out the bankers with another £75bn in the form of “credit easing” will do nothing but harm to economic recovery.

Treasury ministers claim the banks will use the money to lend to small businesses and home owners, which will thus reflate the economy, but there is no chance of this happening.

The banks have already been gifted £200bn by the previous government and it did not contribute to increased lending.

Instead, the money was used to pay fat cat bonuses and to speculate on commodities such as oil and food prices.

The result has been increased inflation and falling living standards at a time of stagnant wages.

In addition, because the banks will be awash with £75bn in cash, there will be no incentive for banks to offer fair interest rates to savers and pension funds.

Once again, there will be another transfer of wealth from hard working savers and pensioners to feckless and essentially parasitical bankers.

Working people and pensioners should resist further cuts to their living standards to pay for the greed of Britain’s bankers.

If the Government has £75bn to dole out, then it should be used to fund real jobs by building schools and public housing, together with improving road and rail transport.

John Gilmore, Bishop Auckland.