The high-street banks have an incredibly serious case to answer over the scandal of “toxic insurance” sold to small businesses in Sussex (The Argus, October 9).

Having met with business- owners in my constituency who were mis-sold these toxic products, I know many now face real financial problems and feel understandably anxious about trusting the banks again. And since small business owners are often wary of speaking out about issues with their bank for fear of damaging their business reputation, this is likely to be just the tip of the iceberg.

Small and independent businesses are the lifeblood of our local economies and the Government has a responsibility to support them, not stand idly by while the banks rip them off. I’m backing calls for an immediate inquiry by the Treasury Select Committee to find out how the mis-selling was allowed to occur, as well as helping to set up an all-party group in Parliament to better represent those affected.

The Government must now act to ensure that the Financial Services Authority puts a stop to the bullying behaviour of the banks, that affected businesses receive adequate compensation, and also make sure the banks lend to businesses so local enterprises can flourish.

Caroline Lucas, Green MP for Brighton Pavilion