The Government are taking action to ensure competitively priced credit continues to be available. On 19 January 2009, the Government announced a package of measures designed to reinforce the stability of the financial system, to increase confidence and capacity to lend, and in turn to support the recovery of the economy. These measures build on those announced on 8 October last year.
As a condition of accessing the Asset Protection Scheme, the Government have agreed legally binding lending commitments with Lloyds and RBS. These commitments will see Lloyds lend an additional £14 billion, and RBS an additional £25 billion, on commercial terms (and subject to market demand), over the 12 months from March 2009. The Government will report annually to Parliament on the delivery of these commitments.
The Government also announced in the Budget that, to support the long-term growth of a thriving third sector, it would consult on the design and functions of a Social Investment Wholesale Bank.