The price controls were imposed in 2003, along with other measures to boost competitiveness. The latter are set to stay, following an investigation showing that the banking market was not working in the public interest.

The temporary 'transitional undertakings', requiring banks to offer smaller-business customers a minimum interest rate of 2.5 percentage points below the base rate and/or free money transmissions, have been removed to allow them to compete more freely for customers. Measures that were introduced to make switching between banks easier, make prices more transparent and prevent grouping together different products and services, such as making loans conditional on opening personal accounts, have been retained. Banks will also still be required to publicise changes made to customer charges.

"Price controls directly conflict with the goal of achieving real competition, which is more likely to save smaller firms' money in the long run," said the FPB's Policy Representative, Matt Goodman. "Our aim is to make competition work and encourage smaller businesses to negotiate with banks, shop around for the best service and change banks if they are not satisfied."

The Competition Commission's four-year inquiry has shown that, although HSBC, Lloyds TSB, Barclays Bank, and the Royal Bank of Scotland continue to dominate the market, and switching accounts is still relatively uncommon, alternative banks have been able to compete more successfully for smaller-business customers. Customers also have higher expectations of what their banks should offer them and are now more likely to consider switching.

The FPB's survey of major banks last year showed that the owners of smaller businesses believed that their performances had reached their highest levels since 1998.

John Hardy is a hairdresser in Harrogate. He said that lifting the price controls would encourage him to seek out banks offering better deals.

"The banks are, to some extent, under control now and people are more aware of what is going on," said Mr Hardy. "There is, however, the danger that their excessive charges could move on to other things. Smaller businesses in particular have to raise their prices to cover credit charges, for example."