In this year’s Mansion House speech, the Chancellor, George Osborne, said his predictions from last year had come true and that Britain’s economy is recovering, but slowly, as was to be expected. He spoke of the moves the UK has made to encourage G20 and the Basel Committee to take strong action on capital and liquidity and on how UK banks must deliver on the lending commitments they have made. He referred to the failure of tripartite regulation and the Government’s plans for the future. He confirmed the Government’s intentions for the new structure and said that, following responses to its original proposals, the Financial Conduct Authority will have an additional primary duty to promote competition. He stressed that European co-ordination is essential, but the right for national regulators to go further on capital requirements than the European norm is also essential. He said the Government supports, in principle, the recommendations of the ICB that investors, not tax-payers, should pay the costs of banks in trouble, and that there should be a ring-fence around better capitalised high-street banks, to give greater protection and to maintain vital services should things go wrong. He referred to the early redemption option in the credit guarantee scheme and the new deposit limit for the Financial Services Compensation Scheme. Finally, he confirmed the “good” part of Northern Rock will be put up for sale. (Source: Mansion House Speech 15 June 2011)