Banks are building up their reserves – hoarding cash, like under the proverbial bed. What is more they have the perfect excuse – new government regulations require them to hold greater reserves and to lend more circumspectly. The big bonuses are safe for a long while yet, just paid out of the hoard of "gold".
So once more we have an unintended consequence. The government want to mend the financial system, rightly, but its chosen method has gummed up the works. So the double dip recession becomes something of an inevitability and may last much longer than needed. Where was the initial big mistake? The last UK government (followed by other governments) rescued the failing banks from the market consequences of their own folly and so by interfering with the capitalist system have just made matters worse. And naturally the least powerful people in the country take the hardest hit.