Osborne to announce enhanced bank saver protection

Savers in UK banks will be given greater protection under measures to be announced by the Chancellor later today.

According to reports George Osborne is set to unveil a white paper on banking reform around lunchtime. The paper follows recommendations made by the Independent Commission on Banking (IBC).

The BBC reported one of the main proposals is to ring-fence High Street retail banking operations from riskier parts of its business, such as investment banks.

Osborne will discuss the planned reforms at his annual Mansion House speech tonight, the report added.

He will say: "We've got to stop problems here in the City of London spilling onto our High Streets and putting taxpayers' money at risk.

"I believe that we have found a workable way to solve what I called the 'British dilemma' - so we are proposing to protect taxpayers in a way that does not make the UK uncompetitive as a home of global banks."