Corporate banking 'to lead Britain out of recession'

Corporate banking is to lead Britain out of the global economic downturn, according to the analysis of one wealth management organisation.

Simon Brazier, co-head of UK equities at Threadneedle, observed the government has stated the corporate banking sector is to pave the way forward for financial recovery, claiming this means October's spending cuts are unlikely to affect this sector.

Speaking of next month's spending review, the private wealth expert claimed: "I don't think there will be any surprises," adding the "blueprint" for the process has been taken from Sweden and Canada in the early 1990s.

For corporate banks, tax rises are most likely to affect their operations and the equities professional observes the balance between higher charges and spending cuts is as yet unknown.

The National Institute of Economic and Social Research reported earlier this month it is likely to rate of economic expansion will soften in the UK during the months leading up to Christmas.ADNFCR-2318-ID-800061945-ADNFCR