SIR – Frank McManus tries to put me straight on the economy (Letters, September 10). “Greedy bankers caused the financial crisis, not Labour”. Yes! However, the banking system is controlled by Government through the Treasury, whose regulation was far too lax.

When Labour finally nationalised problem banks, it followed a course of action proposed by Vince Cable weeks before (probably after incurring more unnecessary damage). Labour’s criticism of coalition cuts is rich, when their proposals were nearly as severe. They clearly think these will make Government very unpopular with supporters like Mr McManus heaping the blame on the coalition. This may explain why Labour walked away from coalition talks themselves.

I’m also very critical of Labour embracing inflation as a good thing (when applied to housing). Higher prices result from shortages which include speculators hanging on to (often empty) properties waiting for price rises. This also impacts on the rental sector.

Eventually, supply meets demand as poorer people cannot afford decent accommodation and are priced out of the market.

Government should have acted to stop or mitigate speculation, possibly through taxation, and taken more positive steps to encourage or oversee new building.

Councillor John Hall (Lib Dem, Windhill and Wrose), Pennithorne Avenue, Baildon