'Lend or lose your bonuses'
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Chancellor George Osborne says he will take a tough line on bank bonuses if lending to small businesses does not increase.
He said: “Let me make this clear today, we will not allow money to flow unimpeded out of those banks into huge bonuses if that means money is not also flowing out in credit to the small businesses who did nothing to cause this crash and suffered most in it.”
This week, six of the UK’s biggest banks announced plans for a £1bn venture capital fund aimed at supporting small businesses. The joint plan between the British Bankers’ Association, the Treasury and the Department for Business is to be headed by Barclays chief executive John Varley.
Osborne told delegates the Government’s £6.2bn spending cuts gave Britain a breathing space in the face of the European debt crisis.
He also revealed controversial plans to remove child benefits for households where at least one person was a higher-rate taxpayer.
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