Blair Admits 'Some Responsiblity' On Economy

Former Prime Minister Tony Blair has accepted 'some responsibility' for the state of Britain's economy.

Mr Blair also admitted he had not fully understood the impact economic integration would have.

But he also said a 'vibrant' financial sector was important for the UK, an apparent warning to Labour party leader Ed Miliband who wants Britain's banks dramatically reined in.

"In respect of the economy, yes, of course, everybody who was in power in the period bears a certain responsibility," he told Sky News' Dermot Murnaghan.

"On the other hand I think what happened, and this is really important for people to understand, this global financial crisis was the product of a whole new way that the financial and banking sector has been working in this past 20 or 30 years.

"(It is) where you have got this deep integration of the global economy and where you have a lot of financial instruments that were created whose impact people didn't properly understand."

Asked if that meant Labour did not fully understand it while he was in power, Mr Blair replied: "No, we didn't."

He added: "A vibrant financial sector is also a very important part of our future. Take the necessary steps but realise that thriving and healthy banking sector is a major part of the modern British economy and will also be so."