George Osborne
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Osborne plans billions in 'credit easing' loans

26 November 2011 Last updated at 22:42 GMT

Chancellor George Osborne will unveil a new government scheme to underwrite up to £20bn of loans to small businesses when he delivers his autumn statement on the economy on Tuesday.

The "credit easing" scheme is intended to prevent the British economy falling back into recession.

The plan sees the government underwrite banks' borrowing, allowing them to borrow more cheaply.

This saving should then be passed on to the firms through lower interest rates.

Carole Walker reports.