Pension-fund executives have given a warm response to the idea of “credit easing”, which was proposed yesterday by the UK Chancellor of the Exchequer, but have said transparency and education will be needed before funds begin to open credit lines to small and mid-sized businesses.

Chancellor George Osborne, speaking yesterday at the Conservative party annual conference, announced the plan of "credit easing" where the public sector would help increase the supply of credit to UK companies - most importantly to small and mid-sized firms who are struggling to obtain loans.