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Osborne unveils plan to kick-start lending by banks

14 June 2012 Last updated at 22:03 BST

The Chancellor has used his annual Mansion House speech to announce a scheme to kick-start lending by banks.

At the event in the City of London, George Osborne said he would work with the Bank of England on a plan to provide billions of pounds of cheap credit to banks, in an attempt to stimulate lending to households and businesses.

He said the measure would help defend the UK economy from the eurozone crisis on Britain's doorstep.