Letter: King Canute games fail to bring back confidence

Sir: You report that pounds 10bn was expended on supporting the pound, thus following devaluation of around 15 per cent, some pounds 1.5bn of foreign currency reserves has been dissipated.

If upon assuming office the Government had announced a reconstruction programme of that amount for hospitals, schools, transport, etc, what a different world would we be in today. Jobs created, bankruptcies avoided, homes repossessions averted, consumer spending encouraged, increased revenue from taxes generated, and a general feeling of confidence created that the tide was turning. Who would not have preferred that, even if the cost would be a (temporary) increase in inflation, say back to 5 per cent?

The Government has expended that pounds 1.5bn and has nothing to show for it except egg all over its face.

Yours faithfully,

JULIUS SILMAN

Corsham, Wiltshire

17 September