Dozens of banks are poised to enter the market in the wake of barriers to new entrants being lifted, according to regulators, The Telegraph reported. The Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority (PRA) said five times as many businesses are currently applying for banking licences as were granted them last year.

The Bank of England has imposed limits on household borrowing for the first time since 1980 in a bid to stop a credit boom emerging amid surging house prices, the Irish Times reported. The restrictions on large loans imposed by the bank’s financial policy committee will not affect current lending, but it will seek to prevent lending from taking off as the UK economy recovers. The central bank expects house prices to rise a further 20 per cent.

Britain will allow more heavily regulated retail banks to offer business customers products such as options and trade finance, according to final legislative proposals. In the wake of the global financial crisis, the UK adopted proposals to separate the retail and investment arms of British banks and erect a “ringfence” around the retail bank so its essential operations continue even if the whole bank fails. If a bank does not respect the ring fence, regulators will have the power to break it up, the Financial Times reported.

Like its rivals in Britain, the Royal Bank of Scotland has been unable to escape criticism from shareholders over the amount of compensation that bankers are paid, the International New York Times DealBook blog reported. Earlier this year, United Kingdom Financial Investments, which oversees the British government’s 81 percent stake in the bank, forced R.B.S. to drop a proposal to pay bankers bonuses of up to two times their annual salaries.

The City’s dramatic revival means inner London is now the only part of the UK to have returned to pre-recession levels of job creation, The Independent reported. A TUC report to be published today reveals a two-speed recovery in Britain’s economy with the capital booming while other parts of the country continue to struggle. The TUC Touchstone pamphlet – Equitable Full Employment: A Jobs Recover for All –paints a picture of a static labour market with people clinging grimly on to the jobs they have outside the capital.

Tragus, the owner of Café Rouge and Bella Italia has secured the backing of landlords to go ahead with a controversial restructuring that will slash its rental bill and put the company on more stable financial footing, The Telegraph reported. Between 80pc and 90pc of landlords and creditors supported the company voluntary arrangement (CVA) plans at a meeting yesterday on Friday.

The UK economic recovery has been dealt a blow after figures showed retail insolvencies have hit an unexpected five-year high and the number of shoppers visiting high streets fell for the second month in a row, The Telegraph reported. Almost 1,300 retailers were declared insolvent during 2013, an increase of 12pc on a year earlier, as rapid expansion of the supermarket convenience store format drove the UK’s cornershops and traditional small retailers to the brink, according to accountancy firm Wilkins Kennedy.

British finance minister George Osborne said on Thursday that he would give the Bank of England stronger powers to curb mortgage lending and reduce the risks that the housing market poses to financial stability, Reuters reported. British house prices have risen by 11 percent over the past year and are close to pre-crisis levels. The International Monetary Fund urged Britain last week to take steps to cool the housing market and reduce the risk of a bubble. Osborne said the housing market was not an immediate threat to Britain's financial stability but could become one in future.

British coal producer Hargreaves Services has withdrawn a loan offer to rival miner UK Coal saying it could not agree to a loan plan with other parties discussing the managed shutdown of UK Coal, Reuters reported. UK Coal, Britain's largest coal producer, went into administration last year and its business has since deteriorated further due to competition from cheaper coal producing markets and the strength of the pound because it is paid in dollars. Hargreaves Services had been in discussions to provide UK Coal with a 5 million pound ($8.4 million) loan.

Tragus Group, the owner of high-street brands Café Rouge, Bella Italia and Strada, has proposed a sweeping restructuring of the one of the UK’s largest restaurant operators, Insolvency News reported. The company has announced it is proposing implementing an organisational and financial restructuring that would see its significant debts shed or restructured to ensure “a long-term sustainable future for the business”. Under the proposed financial restructuring, Tragus aims to reduce its debt burden from £354m to £91m.