Queen's speech: George Osborne to outline banking reform plans

Government to press ahead with banking reform and Vickers recommendations – with further details released next month

The queen prepares to deliver her speech to parliament. Photograph: Oli Scarff/Getty

The government signalled its determination to press ahead with banking reform in the Queen's speech but intends to provide more details on 14 June when George Osborne delivers his Mansion House speech.

The white paper outlining how the government intends to force banks to erect a ringfence between their high street and investment divisions will be published alongside the chancellor's set-piece speech next month.

Kevin Burrowes, UK financial services leader at PwC, said: "Formally signalling intent to pursue ringfencing helps eliminate uncertainty but, in reality, the banks are already well aware this would be pursued by the government. All banks are already undertaking enormous changes to their business models in light of trading outlook and pressure to generate acceptable returns for investors for the increasing capital that has to be invested."

In the speech, the Queen said that "measures will be brought forward to further strengthen regulation of the financial services sector andimplement the recommendations of the independent commission on banking".

The commission, chaired by Sir John Vickers, also included recommendations on bolstering competition among high street banks by making it easier to move bank accounts. There were also proposals about "depositor preference", which would allow savers to get their money back when a bank goes bust before other creditors – a move that is intended to reduce the need for taxpayer bailouts. Despite lobbying by the banks for this to be avoided, the government is expected to press ahead with change.

While the Vickers legislation is expected to be passed by 2015, the banks are likely to have until 2019 to implement the artificial ringfences.

David Wootton, lord mayor of the City of London, said the City would work with the government on implementing bank reform: "The City looks forward to working closely with government to ensure that these reforms – particularly ringfencing – are sensibly implemented in a way that delivers a stable and secure banking system, but does not hinder economic growth.

"Clearly, the taxpayer should not be asked to underwrite bank bailouts again but we must also guard against hindering the UK's capacity for future growth."