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| Version 5 | Version 6 |
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| Darling 'to force banks to lend' | Darling 'to force banks to lend' |
| (10 minutes later) | |
| The government says it has not ruled out forcing banks to lend to small firms hit by the credit crunch. | The government says it has not ruled out forcing banks to lend to small firms hit by the credit crunch. |
| Chancellor Alistair Darling is also reported to be considering a cap on interest rates on small business loans. | Chancellor Alistair Darling is also reported to be considering a cap on interest rates on small business loans. |
| In his pre-Budget report on Monday he is set to unveil a number of measures to kick-start the economy, including tax cuts and increased public spending. | In his pre-Budget report on Monday he is set to unveil a number of measures to kick-start the economy, including tax cuts and increased public spending. |
| But he may also be forced to announce deferred tax rises and spending cuts due to soaring debt, reports say. | But he may also be forced to announce deferred tax rises and spending cuts due to soaring debt, reports say. |
| The Financial Times says Treasury officials believe the "mammoth shock" to the economy as annual borrowing heads towards £120bn will cause tax revenues to fall far below previous estimates. | The Financial Times says Treasury officials believe the "mammoth shock" to the economy as annual borrowing heads towards £120bn will cause tax revenues to fall far below previous estimates. |
| BBC's Nick Robinson and Hugh Pym discuss likely measures in the PBR | BBC's Nick Robinson and Hugh Pym discuss likely measures in the PBR |
| The Conservatives have spoken out against the government's plans for a temporary "fiscal stimulus", warning that it could lead to tax increases later. | The Conservatives have spoken out against the government's plans for a temporary "fiscal stimulus", warning that it could lead to tax increases later. |
| But ministers say it is necessary to stave off recession and is in line with action being taken by other major industrialised nations. | But ministers say it is necessary to stave off recession and is in line with action being taken by other major industrialised nations. |
| Election speculation | Election speculation |
| The government is also under pressure to come to the aid of small businesses. | The government is also under pressure to come to the aid of small businesses. |
| This is amid growing anger at the apparent reluctance of banks to pass on cuts in interest rates and free up credit - particularly after several took part in the government's £37bn bailout scheme. | This is amid growing anger at the apparent reluctance of banks to pass on cuts in interest rates and free up credit - particularly after several took part in the government's £37bn bailout scheme. |
| MPs from all parties are thought to have been bombarded with letters from businesses saying banks are refusing to lend to them. | MPs from all parties are thought to have been bombarded with letters from businesses saying banks are refusing to lend to them. |
| Despite having been pulled back from the brink, the banks appear reluctant to launch their sizeable recapitalisation lifeboat and start lending again to households and businesses John McFall Analysis: Crunch time for Darling | Despite having been pulled back from the brink, the banks appear reluctant to launch their sizeable recapitalisation lifeboat and start lending again to households and businesses John McFall Analysis: Crunch time for Darling |
| Mr Darling is reportedly "infuriated" by the attitude of the banks and, according to stories in the Daily Mail and the Daily Telegraph, is preparing to underwrite small business loans in his pre-Budget report. He may also legislate to make the banks free up credit. | Mr Darling is reportedly "infuriated" by the attitude of the banks and, according to stories in the Daily Mail and the Daily Telegraph, is preparing to underwrite small business loans in his pre-Budget report. He may also legislate to make the banks free up credit. |
| Downing Street refused to rule out such a move, but the prime minister's official spokesman declined to comment on the contents of the pre-Budget report, beyond saying it would include "help for small businesses to get them through this difficult period". | Downing Street refused to rule out such a move, but the prime minister's official spokesman declined to comment on the contents of the pre-Budget report, beyond saying it would include "help for small businesses to get them through this difficult period". |
| He said both Mr Darling and Mr Brown were determined to see banks and building societies fulfilling their commitments to lend to small businesses. He said the government wanted to work constructively with the banks and were "in dialogue" with them. | |
| The spokesman refused to comment on reports in the London Evening Standard that Mr Brown is planning to hold a general election in June to coincide with European and local elections and take advantage of a "recession bounce" in his fortunes, saying the PM was "giving the financial crisis his undivided attention". | |
| 'Nationalisation threat' | 'Nationalisation threat' |
| Shadow Chancellor George Osborne has said a Conservative government would step in to guarantee loans made by banks and would even loan money directly to businesses as a "radical" last resort. | Shadow Chancellor George Osborne has said a Conservative government would step in to guarantee loans made by banks and would even loan money directly to businesses as a "radical" last resort. |
| The Liberal Democrats have also said the government should lend directly to businesses, through the Post Office, local authorities or even by creating an entirely new government-owned bank. | The Liberal Democrats have also said the government should lend directly to businesses, through the Post Office, local authorities or even by creating an entirely new government-owned bank. |
| Labour MP John McFall, chairman of the Treasury select committee, said the major banks should be threatened with full-scale nationalisation if they failed to comply. | Labour MP John McFall, chairman of the Treasury select committee, said the major banks should be threatened with full-scale nationalisation if they failed to comply. |
| "Despite having been pulled back from the brink, the banks appear reluctant to launch their sizeable recapitalisation lifeboat and start lending again to households and businesses," Mr McFall said. | "Despite having been pulled back from the brink, the banks appear reluctant to launch their sizeable recapitalisation lifeboat and start lending again to households and businesses," Mr McFall said. |
| "It would seem that they are instead navel-gazing and looking warily at each other instead of concentrating on their customers, many of whom are still in peril on a sea of uncertainty." | "It would seem that they are instead navel-gazing and looking warily at each other instead of concentrating on their customers, many of whom are still in peril on a sea of uncertainty." |
| But Angela Knight, of the British Bankers' Association, told BBC Radio 4's Today programme that banks had to keep capital as a safety net, and the money some banks were given by the government was "to absorb losses". | But Angela Knight, of the British Bankers' Association, told BBC Radio 4's Today programme that banks had to keep capital as a safety net, and the money some banks were given by the government was "to absorb losses". |
| She insisted that banks were still lending money. | She insisted that banks were still lending money. |
| Would it be right to force banks to lend? What else would you like to see from the pre-Budget report? Send us your views and experiences using the form below: | Would it be right to force banks to lend? What else would you like to see from the pre-Budget report? Send us your views and experiences using the form below: |