Amazingly, the public Sectors told to save £370million by Christmas whilst the Government is giving a further £25.5billion of tax payers money to Lloyds & RBS.

Has this government gone mad? They tell us the tax payer won’t lose out when they bailout the failing banks but then they tell public sectors, the only area we really get any of our money back, to cut costs by £370million by Christmas.

Leading figures from the Public Sector have said they may have to take drastic action to balance their books in line with this new target and we all know what “drastic action” means you, me and their staff all suffer whilst the banks promise not to give bonuses to staff with wages over £39,000 a year.

Is it just me or is all this madness? We can bailout the banks that put us in the recession but we can’t find the cash to look after the doctors and nurses, the ambulance and fire services, the police and all the public sector employees that work to keep us safe well and the UK functioning as it should.

Take that £25.5billion and put it into the public sector and force the banks to cut wages, get rid of risky asset and investments banking divisions, streamline them back to raw banking functions with their wings clipped from making risky decisions.

There has been lots of talks for months and months about the split up of the national banks that now rely so heavily on the Government. With the Government owning 43% of Lloyds and 70% of RBS this has been a widely talked about issue.

The banks will want to get their houses in order before the end of the financial new year. The competitions commission of the EU, Neelie Kroes, wants to use her powers to put conditions on state aid to encourage competition in the UK banking system as she has done elsewhere. These two factors mean that the pressure is really on.

This will mean a scaling down of the UK banks and the Government Asset Protection Scheme. Lloyds and RBS will have to sell off some of their mainsteem well known branded company divisions. They will also be under pressure to get rid of some of the investment banking sides of the business so as to lessen the risk on the UK taxpayers.