Price controls on the accounts of small and medium sized businesses held with the big four banks have been lifted, due to a supposed increase in competitiveness since they were introduced in 2003.

This has sparked a vigorous reaction from the small business community, who feel that the big four banks (HSBC, Royal Bank of Scotland, Lloyds TSB and Barclays) were not complying with the conditions of the price controls in the first place.

"We are utterly bewildered by the Competition Commission's provisional decision in this case," stated Mike Cherry, the Federation of Small Businesses' (FSB) chairman of financial affairs.

"It flies in the face of all the evidence we have given and completely contradicts the experience of thousands of our members."

The price controls had been introduced because the big four’s market share stood at 95% in 2000, which fell to 85% in 2006 after the controls had taken effect. The measures also forced banks to make switching accounts easier and to make pricing more transparent.

The FSB is in discussions with the Competition Commission in an attempt to reinstate the controls. The consultation is due to end on September 28th.