The recovery remains fragile with borrowing still not returning to pre-recessionary levels and spending remaining low.
Speaking in his budget the Chancellor Alistair Darling, said that the banks had to do more but there was also a continued problem with confidence.
"Confidence has not fully returned to either businesses or consumers," he said pointing to difficult trading conditions in major import markets in Germany and Ireland.
Resellers have long called for the banks to come under pressure to increase lending to ease up credit problems and Darling recognised that banks needed to do more.
"There can be no return to business as usual for the banks but we must also remember their success is vital for the British economy," he said.