Saturday, October 9, 2010
Politicians are wary of looming public anger over bonuses, with pay-outs in the City expected to reach Â£7bn this year, according to the Centre for Economics and Business Research, at the same time as workers face pay freezes and benefits are axed. In addition, small businesses are still struggling to secure loans from the banks â€“ a situation that threatens the recovery. Mr Osborne added in threatening tones: "Banks would do well to pay close attention to what I said [at the Tory conference]. We are very clear that they have to get credit flowing to small and mid-sized businesses." Should the Bank of England decide to restart its Â£200bn quantitative easing programme to offset any slowdown in growth, he indicated he would be supportive.