The Labour government has announced the biggest shake-up of high street banks for a generation.

On bonuses, new tough rules will mean no cash bonuses will be paid this year to any staff earning over £39,000 and Executive Board members will have any bonuses deferred for three years. This represents the toughest controls on bonuses anywhere in the world.

The plan to create three new banks by breaking up parts of the Royal Bank of Scotland and Lloyds Banking Group will provide a better deal for taxpayers – by reducing the total assets protected by the taxpayer by over £300bn.  Increased competition between the additional banks will also benefit consumers

The measures also create legally enforceable Lending Commitments to increase lending to businesses and mortgages by £39bn. Each bank has agreed to publish a 'Customer Charter' for lending to small and medium businesses.

When the banks faced collapse last year and the global recession hit, Labour took the right decisions to protect savers and to support businesses and families.  The alternative would have been disastrous.

Meanwhile, George Osborne has been consistently wrong on the recession and is now making the wrong calls on the recovery