George Osbourne, the chancellor of exchequer annnouce the government plan to boost the economy by helping small businesses. He reported at the tory party conference today that government is going to introduce "credit easing"

What exactly is credit easing and how do government plan to use this to help the small businesses?

Government is not going to put money directly into the hands of businesses or give them loans directly. With best intention and good will, government is not in a situation to lend directly to small businesses. Governments have to rely on banks to help out in this regards

Big businesses go into the stock market and buy bonds. Investors invest directly into thESE bonds and big business are able to go into this stock market and have
access to substantial amount of funds.
 
The process of doing this is so tedious and complex that small businesses do not have enough resources to compete for this type of fund. Hence big businesses do not need
to rely on banks for their borrowings, they simply go to the bond market to raise money for their projects. Inability to secure funds this way is a serious disadvantage to small businesses.
Governmet plans in regard to the credit easing is simply to encourage banks to go into the bond market and buy bonds and then raise money to loan out to small businesses.
Government plan is therefore to guarantte this bonds on behalf of the small businesses. With this guarantte, the banks are expected to confidently go into the bond market to buy bonds and lend to small businesses.

Time will tell if the banks after rasing this funds are willing to lend truely to small businesses. Banks at this time have strict lending criteria. Credit facilities to small busineeses is the key to boosting the economy.
If the idea of credit easing works and banks coperate fully, then British economy may well be on its way out of recession.