Britain now intends to focus on growth as Prime Minister David Cameron urged the importance of trade to the country's business ambassadors.
Cameron urged the ambassadors to 'sell Britain' to the rest of the world, and emphasized on the importance of growth. Several business ambassadors met with the PM and Lord Green, Britain's new Trade and Investment Minister, Chancellor George Osborne, Foreign Secretary William Hague and Business Secretary Vince Cable at Cameron's residence.
Media reports also reported that Cameron has switched focus from cutting bonuses of banks to boosting loans.
Reports on Bloomberg cited two government officials familiar with the matter who said that ministers recognize the fact that people will consider bankers' pay as too high, no matter how much banks cut bonuses.
They said increases in bank lending might lead to faster economic growth, boosting the government's popularity, the report said.
Both U.S. and the U.K have been looking at introducing more laws to force disclosures of executive compensation, particularly of those in banking. During the recession, several inconsistencies came to light regarding the pay, particularly as it was discovered that several CEOs were awarded heavy bonuses even as the companies were struggling for cash.
Separately, U.K. also signed about 2.6 billion pounds worth of deals with China, in an effort to strengthen trade ties.
Chinese vice-remier, Li Keqiang is on a four-day visit to the U.K. with about 50 government officials and 100 Chinese businessmen. Li is expected to succeed the current Chinese PM Wen Jiabao.
The deals are expected to safeguard several jobs in the U.K. and also create more in the future.
U.K.'s deputy PM Nick Clegg also accompanied Li to Scotland as Grangemouth oil refinery and PetroChina, China's oil and gas firm, signed a deal that would help the Scottish firm protect about 2,000 jobs.