Darling to save economy with taxpayers' money

Date: 8th October 2008

The bail-out plan for the British economy was announced by chancellor Alistair Darling this morning.

Chancellor Darling's £50 billion proposal - along with £200 billion from the Bank of England - is designed to avert a colossal failure of confidence in the financial sector and will be funded by taxpayers.

The plan will see the government guarantee up to £250 billion worth of fresh debt by lenders in a bid to help banks raise funds.

Chancellor Darling said this morning: "We need to get longer term lending, which gives confidence and allows banks to start lending again.

"I believe it will go a long way … as I have said before, we will do whatever it takes."

It is hoped that the bail-out will help kick-start the credit market by guaranteeing short-term lending.

Taxpayers filing self-assessment tax returns have until October 31st to do so, unless they are submitting online, in which they have until January 31st 2009.