June 14, 2012 - Landmark reforms to the British banking industry will go ahead despite the fact they are unpopular among the majority of financiers, George Osborne has confirmed.

In a speech delivered at Mansion House last night (13 June), the UK chancellor insisted the government will not bow to pressure from the City and will press ahead with proposals put forward in the Independent Commission on Banking's report.

This study - which was headed up by Sir John Vickers - suggested that the high street operations of major lenders should be ring-fenced from their investment banking arms in order to protect their customers' money.

And Mr Osborne stated the Conservative-Liberal Democrat alliance will follow these recommendations by "fundamentally reforming the structure of our banking sector" in order to make sure taxpayers do not have to foot the bill should things go wrong.

"We will be able to bail in creditors when a bank fails rather than turning to the public purse," he noted.