The prime minister, Gordon Brown, and the chancellor, Alistair Darling, today unveiled the government's plans to stabilise the banking system. It involves providing £50bn of taxpayers' money as capital - that's £2,000 for each taxpayer. They also need enough cash to be able to operate day to day. A further £200bn is being made available through the special liquidity scheme. And another £250bn is set aside to underwrite lending between banks.
The chancellor has been keen to stress the difference between the UK plan and that of Hank Paulson, the US treasury secretary. Nils Pratley, the Guardian's financial editor, says that - as with the Paulson plan - there are details that need to be explained. And there is still no guarantee for our savings.
Brown said it would be comprehensive and far reaching. Will it be enough? Deborah Hargreaves, the Guardian's business editior, believes it may have a profound effect on the way we live for a generation.
With a £50bn hole in public finances, it won't be long before the chancellor either raises taxes or cuts public spending. But Aditya Chakrabortty, the Guardian's economics leader writer, explains the benefit to UK taxpayers from the scheme.
