Lib Dem Conference 2011: Clegg pledges ‘firewall’ for banking system

Deputy Prime Minister Nick Clegg has defended his party’s support for the coalition’s spending cuts and pledged to create a “firewall” to protect retail banking customers from speculative investments.

Addressing the Liberal Democrat conference, Clegg said coalition action on the economy has involved "agonisingly difficult decisions" but that he was confident its decisions were correct.

"Handing control of the economy to the bond traders: that is not progressive," said Clegg.

"We are here to build a new economy safe from casino speculation. That is why a Liberal Democrat business secretary is putting a firewall into the banking system," he said.

Clegg also promised to give taxpayers a stake in the banks nationalised during the financial crash.

"When we come to sell those bank shares, I want to see a payback to every citizen," said Clegg.

"Your money was put at risk, your money was used to bail out the banks, and so the money made by the banks is your money, too."

The deputy prime minister said the party was right to embark on deficit reduction and pointed out the government is "investing in infrastructure, cutting red tape, promoting skills and getting the banks lending".