WORCESTER’S MP has welcomed government plans to take £200 million from banks to invest in the voluntary sector while getting financial insitutions to lend more money to small businesses.

Robin Walker said he was “excited” about the proposals announced by Prime Minister David Cameron and Chancellor of the Exchequer George Osborne yesterday.

Mr Walker, a Conservative backbencher, said: “This is a big opportunity for Worcestershire organisations to get involved in.”

Mr Cameron’s Big Society agenda got a big boost as part of the deal thrashed out between the Government and the banks.

The Prime Minister told MPs that the Big Society bank will take £200 million from financial institutions to invest in the voluntary sector.

That was welcomed by Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations.

Meanwhile, Barclays, Lloyds Group, RBS and HSBC, as well as Santander, have agreed to increase their lending to small businesses by £10 billion to £76 billion and overall lending will increase from £179 billion to £190 billion.

The UK’s biggest banks agreed to rein in bonuses.

Mr Osborne said while he recognised the public anger at the “terrible mistakes” made by the banks he added: “Anger and retribution will not bring one percentage point of economic growth or create one single new job.”

However, shadow chancellor Ed Balls was scathing about the package of measures and told Mr Osborne he had gained “precious little” from the banks.