Banks ‘imperilling’ economic recovery

BUSINESS Secretary Vince Cable launched a new onslaught on the banks last night, accusing them of “imperilling” Britain’s economic recovery.

Mr Cable used his annual set-piece address to the City to denounce the support offered by the banks to enterprising small and medium businesses as “second division”.

Speaking at the Lord Mayor of London’s trade and industry banquet at Mansion House, he said thousands of firms were trapped in a “valley of death” because they could not get the credit they needed to develop new products.

He also used the speech to ditch his controversial proposal to break-up the Royal Bank of Scotland and create a “British business bank” specifically to increase the flow of credit to firms. He admitted the scheme would delay the return of the part-nationalised bank to the private sector and could fall foul of EU rules.