The pre-budget report promised more scrutiny of bank lending but also more government money to promote lending, particularly to small businesses, in what appears to be direct response to complaints that mortgage funding and corporate lines of credit have largely dried up as banks have hoarded capital.

The government will provide £1bn in support for loans to small businesses as well as an additional £1bn aimed specifically at small exporters who need working capital. John Walker, National Policy Chairman of the Federation of Small Businesses, said the £1bn in government-supported loans was in line with what his group had been asking for and “will provide a vital cash boost to businesses struggling with rising costs and a lack of credit.”