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The UK government is currently formulating a policy that could lead to the establishment of a new state-supported bank.
That is according to chancellor George Osborne, who has revealed that the Conservative-Liberal Democrat alliance is considering such a measure in order to make sure the country's small businesses can access the funding they need to grow.
Speaking during an interview on the Andrew Marr Show on the BBC, Mr Osborne explained the current weakness in the British banking system represents "one of the biggest problems we've got" in terms of stimulating economic expansion.
And, with this in mind, he revealed that ministers in the Treasury are now "actively working" on setting up a small business financier sponsored by the administration.
"Small businesses are the innocent victims of the financial crash," he added.
Meanwhile, in a column published in the Mail on Sunday yesterday (2 September), prime minister David Cameron pledged that the government's deficit-cutting plans will continue to be implemented in the coming months.
By Asim Shah
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