Tory leader drops opposition to finance bill in emergency statement to party conference

Conservative leader David Cameron has announced he will drop remaining objections to a government bill designed to ensure failing banks can be rescued to ensure safe passage of the legislation.

In a short, unplanned speech to the Conservative Party conference today Cameron said he "would not allow the political wrangling of the US to take place here."

Cameron made the intervention following massive stock market falls overnight after the US House of Representatives rejected the US government's rescue plan for the finance industry. The crisis has hit shares in housebuilders and banks today.

Cameron said: "We should always be ready to put aside party differences to bring stability in difficult times. Working across party lines we might need to marshall support in order to take some big decisions for our country."

We should always be ready to put aside party differences to bring stability in difficult times

David Cameron

Until today the Conservative Party had opposed the government's finance bill on the basis that the only the Bank of England should be able to decide to trigger the rescue of a failing bank, not the Financial Services Authority, as proposed by the government.

Cameron said his party would drop that objection when the bill returns to Parliament on Monday, in order to ensure safe passage of the bill. He also called on government to bring forward legislation designed to protect the savings of home owners in banks in danger of going bust.

Cameron said he would still give a longer speech as planned, tomorrow, designed to set out his detailed policy responses to the financial crisis.

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