New measures to kickstart bank lending announced by Osborne

The Bank of England has announced two ambitious schemes to try to boost levels of growth and activity in the British economy.

From next month £80bn will be made available to banks on condition that they pass it on to customers in the form of business loans and mortgages.

The other scheme will make it easier and cheaper for banks to borrow to ease their cash flow.

The Chancellor gave details of the initiatives in his annual speech at the Mansion House in the City of London.

Robert Peston reports.