Budget 2010: Darling reveals lending targets for RBS and Lloyds

The Chancellor has announced new targets for lending for the state-aided banks, Lloyds and Royal Bank of Scotland (RBS).

RBS, which is 84% owned by the taxpayer and Lloyds, which is 41% owned by the taxpayer, will now have to make £94bn available in loans to small businesses. At least half of this lending must be to small and medium-sized firms.

The Chancellor hopes the new targets will stimulate lending.

He will create a new investment corporation - called UK Finance For Growth - to oversee the support for businesses.

In December, the National Audit Office (NAO) revealed Government support for Britain's banks had reached £850bn, adding the the eventual cost to taxpayers will not be known for years.

Its commitments include buying £76bn of shares in RBS and Lloyds and indemnifying the Bank of England against losses incurred in providing more than £200bn of liquidity support.

It also must provide £40bn of loans and other funding to Bradford & Bingley and the Financial Services Compensation Scheme and insurance cover of over £280bn for bank assets.