Chancellor of the Exchequer, George Osborne. announced that he was accepting the recommendations of the independent Vickers Commission on Banking that banks should “ring-fence” their high-street retail operations from more speculative activivities and should also set aside an identifiable fund as a buffer against hard times.

Independent advice was also accepted broadly by the Prime Minister Cameron when he confirmed that there would be changes to the National Health Service reform proposals contained in a Bill already before Parliament following a three month intensive consultation with all sectors of the NHS. In particular, an earlier emphasis on competition between the NHS and private practicioners has been removed and Mr Cameron pledged that he has no intention of “privatising” the NHS.

Turmoil continued over the crisis of Greece's financial difficulties. The Prime Minister Papandreou reformed his Cabinet with a new finance minister but doubts remained about Greece's abiliity to meet the austerity measure being required of it by other EU members and the International Monetary Fund.