Block on dissolving parliament is an outrage - Adonis

The coalition government's move to make it harder to dissolve Parliament is a "constitutional outrage", ex-Transport Secretary Lord Adonis has said.

The Lib Dem-Tory plan will mean that 55% of MPs must approve such a move to get it through the House of Commons. A simple majority is currently enough.

As Britian has ANOTHER non elected PM how is Britain going to cope.

As Britain waves good bye to one non elected PM we welcome in another non elected PM.

With the news the Tory's have selected some of the most right wing Tory's back into government - lets wait for all scandal and controversy to start.

At least this has now reduced as down to only two electable parties - as I believe the electorate will and should punish the Lib Dems for backing the Tory's.

If the Tory's return as the old Tory's will can look forward to another election in early 2011.

Banking reform proposals outlined

Opposition parties are setting out details of how they would regulate banking, following the loss of billions of pounds in the credit crunch.

Lib Dem Treasury spokesman Vince Cable is expected to argue that large, failed UK banks are the "financial equivalent" of the Chernobyl nuclear disaster.

And taxpayer-owned Lloyds and Royal Bank of Scotland should be broken up.

Meanwhile, Shadow Chancellor George Osborne wants to give the Bank of England more regulation powers.

However, he also wants to curb the personal power of the governor of the Bank by vesting the responsibility for supervising financial institutions in a new financial policy committee. This would include independent appointees.

The Tories, in their 52-page "plan for sound banking", also propose a raft of measures to protect and empower consumers.

These would include transforming the rump of the current Financial Service Authority (FSA) into a consumer protection agency and also forcing banks to give the consumers more useful information on what they charge.

Treasury minister Lord Myners called the proposals "window dressing that ignore the failures that led to the global financial crisis".

"While George Osborne talks about who's in charge, we are focused on the lessons of the crisis, including greater scrutiny of the shadow banking sector and a crackdown on excessive City bonuses.

"The Tory proposals would abolish an independent, expert regulator, while diverting attention from banks that took excessive risks that led to this crisis."

'Not hostile'

Meanwhile, Mr Cable will use a speech later to argue major reform is needed to make banks a lesser threat to the UK economy.

He will tell the London Stock Exchange he believes there is a long-term role for state banking, and will argue the banks in which taxpayers have a stake should be broken up into smaller parts before being returned to private ownership.

Tory financial plans
Mr Cable will also call for highly-paid bankers to publish details of their pay and bonuses and will repeat his calls for the FSA to keep its role as banking regulator.

"Some aspects of the financial services industry are simply too big for the British economy to manage safely," he will say.

"The large, failed, British banks are the financial equivalent of Chernobyl. Like the former Soviet Union, the UK became over-reliant on dangerous financial reactors."

To prevent Britain from becoming the next Iceland, "radical safety measures" were needed, he will argue.

"My approach to the City is not one of hostility, or of obsequiousness. I recognise its importance.

"But it needs 'tough love', not the freedom to run amok."

Earlier this month, Chancellor Alistair Darling said banks would have to hold more capital and announced plans to strengthen regulation.

He intends to set up a new Council for Financial Stability, which would see the FSA, the Bank of England and the Treasury meeting regularly and reporting on the systemic risks to financial stability.

sourced from THE BBC