The government has outlined two new bills in the Queen's Speech designed to strengthen financial regulation and reduce the country's debt.

The Financial Services Bill calls for a new Council for Financial Stability and gives the Financial Services Authority increased powers to regulate banks. The Fiscal Responsibility Bill would commit the government to halve its budget deficit within four years.

The Federation of Small Businesses (FSB) have called on the government to ensure that the measures are implemented to help small businesses still struggling to access affordable finance.

"It has been a tough year for small businesses, with shoppers spending less, larger companies paying their small suppliers later and banks only just starting to lend again, although often at high rates,” said John Walker, National Policy Chairman of the FSB.

"Many are starting to feel confident about their future prospects and it is important that any legislation in the next few months, particularly on the banking sector, helps to develop the good feeling rather than being used to divide up the political ground ahead of the General Election."