Osborne unveils £140bn scheme to kick-start stagnant economy

The Bank of England is to offer money to high-street banks to kick-start mortgage and small business lending to prevent loans being rationed for many families and entrepreneurs, the Chancellor announced.

It comes after sharp rises in the costs of mortgages and other loans in recent months as banks struggle to raise money in the midst of the single currency crisis.

Sir Mervyn King, the Bank of England Governor, said that the “industrialised world have thrown everything bar the kitchen sink” at the global economic meltdown but that even “bolder action” was now required.
In the annual Mansion House speech in the City, the Chancellor said he was no longer prepared to “stand on the sidelines” and that the radical new “bank funding scheme” will be launched within weeks. 

http://www.telegraph.co.uk/finance/financialcrisis/9332570/Osborne-unveils-140bn-scheme-to-kick-start-stagnant-economy.html