Bank shares for all.

When the Tories said they would offer subsidised shares in the bailed out banks (Royal Bank of Scotland and Lloyd’s Banking Group) to members of the public through the ISA scheme – I was comforted that responsible capitalism at its best is still alive.

Even though the banks were bailed out with public money, the public was not going to physically share in any future windfalls. What the conservatives are offering is a great opportunity for the public to share some of the future benefits and proceeds which otherwise would have been all spend by government. I am confidant that once the finer details are worked out the public will see this scheme for what it is – a fair move on the right direction.

Unlike the current administration, the Conservatives are not “forcing” tax payers to by bank shares, they are “offering them” – at a reasonable price – that means the public is free to decide. Plus selling shares via ISA means any dividends and capital gains would be tax-free and there will also be a cap on how many shares any one person can buy per financial year. For Mandelson to dismiss the idea as a political gimmick is expected, but for Vince Cable to say “it would be wrong to encourage people on low income to invest….” is surprisingly absurd, I expected much better form him, maybe it is the allure of government talking!

Osborne made it clear that this scheme will take place in the future after the economy is more stable and the government stood to make a profit. Although that could take a number of years, we can at least take comfort in knowing that with the Conservatives the publics’ interest is always first.