Nothing illustrates the Government's central dilemma over the economy better than the Royal Bank of Scotland.

RBS's results were predictably awful, and boss Stephen Hester was right to warn that recovery for the bank would be a marathon rather than a sprint. But what about the UK's economic recovery, seemingly increasingly marathon-like?

Here the Government has divided loyalties and instincts. As the majority shareholder in the bank they want it to reduce its losses and build up its capital - so it can be sold off at some point. However, as custodians of the wider economy they also want RBS to lend freely, maybe to some of the more marginal cases, just to help the economy move ahead. Yet that approach might lead to yet more bad debts and losses.

Rather insensitively Hester spoke dismissively about lending more to business on the Today show this morning in his interview with Evan Davis. Well, he is entitled to his view, but ministers and their agency UKFI that looks after our stakeholdings cannot have things both ways.

They need to tell Hester what it is they want him to do - fix his bank or help fix the economy.