Govt double dip fears as bank loans dry up - papers

George Osborne and Vince Cable fear the rationing of lending to small firms could reverse the UK's economic recovery.

The Chancellor and business secretary are anxious the lack of lending to small businesses could lead Britain back into recession, but banks claim there is no demand for credit, the Guardian reports. A green paper, to be rushed out by the Chancellor and business secretary before next week's parliamentary recess, will acknowledge the scale of the lending rationing crisis, which could "abort" the fragile recovery. Cable says the paper represents Government anxiety about the flow of funds to smaller companies. "The green paper will acknowledge the scale of the problem and how the recov...