Chancellor urged to stand up to banks

Chancellor George Osborne has been urged to “resist buckling” under the pressure of “intense lobbying” by banks ahead of moves to reform the financial sector.

The Financial Services Bill is due go before the House of Lords in the next fortnight, paving the way for the abolition of the Financial Services Authority (FSA) and the birth of two replacement organisations.

Mr Osborne is also due to publish a White Paper on the Banking Reform Bill, introducing a raft of measures to prevent a recurrence of the banking collapse.

Consumer charity Which? called on the government to keep “ordinary people” in mind when pushing through the bills amid criticism from banks who have claimed the reforms will prompt large financial institutions to leave the UK.