A package of measures designed to help small firms through a recession will be top of the agenda at a meeting between British bank chiefs, Alistair Darling, the Chancellor, and Lord Mandelson, the new Business Secretary.

At this morning's meeting, to be held at the Treasury, Mr Darling and Lord Mandelson are expected to urge banks to increase lending to small firms amid signs that the recent rescue scheme has had no immediate impact on the availability of money for small companies.

A spokesman for the Treasury said: "As far as we are concerned this is just one in a series of regular meetings between the Chancellor and the banks. "

No immediate announcement is expected as a result of the meeting, although it is thought that a package of measures similar to those that the banks implemented to help farmers during the foot and mouth crisis of 2001 could be discussed.

A banking source said: "Banks don't want to end up owning small businesses, just as they didn't want to own farms. All sorts of measures were taken to help them, including payment holidays."

Britain's 4.5 million small businesses, which employ 14 million people, have emerged as the central battle ground for the Government's economic recovery plans. Earlier this week, the Government revealed a £350 million package to help improve training and provide swifter access to government funds.

As a condition of the £37 billion government rescue of the banks, Royal Bank of Scotland, HBOS, owner of Halifax and Bank of Scotland, and Lloyds TSB must continue lending at 2007 levels.

However, Barclays and HSBC, which did not take any cash from the Government and are bound by no agreements, are also understood to be attending today's meeting.

The British Chambers of Commerce (BCC) has complained that there is no sign that banks are dropping "punitive" charges to small businesses.

"The cost of money is undoubtedly higher than it was and we see no evidence of it coming down," David Frost, the BCC's director general, said. "Banks are charging for services that were previously parts of the deal," he added.

Earlier this week Lord Mandelson told MPs that banks will be urged to show greater "discretion and sensitivity" in their dealings with small firms.

In a Business Select Committee hearing earlier this week, he said there was anecdotal evidence that smaller businesses were being hit with a "double whammy" by some banks — being asked for more security and higher interest payments on loans, while also paying extra charges.

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