The Confederation of British Industry said the Vickers’ report recommendation that banks should have an assets safety cushion of between 17% and 20% would not help businesses.

The Government welcomed the report, which says banking for business and retail customers should be separated from higher-risk investment banking.

All three main parties appear ready to co-operate to get the radical shake-up in place by 2019.

The credit crisis that became the UK’s worst recession in decades led to the Government nationalising Northern Rock and part-nationalising Royal Bank of Scotland and Lloyds.

Taxpayers have an 83% stake in RBS and one of 41% in Lloyds Banking Group, which absorbed the Halifax and Bank of Scotland (and includes Black Horse, the biggest UK motor loans provider).