George Osborne: “The fall in interest rates is welcome and necessary, given the increasingly bad economic news. However, it will inevitably hit hard millions of savers and pensioners, who are the innocent victims of Gordon Brown’s recession. That is why the Conservatives are calling for the tax on basic rate savers to be abolished and the tax free allowance for pensioners to be increased at the Budget.”

John Redwood: "What is it that makes the MPC hate us all so much? In 2006-8 their decisions meant lots of people would be sacked in industry and commerce by keeping rates too high, despite warning. They did that well, as forecast. Now they want to bash the savers, by almost eliminating interest on deposits. They are doing a great job on destroying the savings culture and pushing prudent pensioners into poverty. The savings rate will of course go up, as people borrow less and it is a net figure. That will merely conceal the pain and anger of true savers. Why don’t we put them onto performance pay? That way we could avoid paying them anything, as their performance has been so poor."

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