Treasury and Bank look to boost bank lending

The Bank of England to offer up to £80bn in credit to banks - as long as they lend it to businesses and households.

Sir Mervyn King says the money would help protect the British economy from the 'large black cloud of uncertainty' caused by the crisis in the eurozone.

Bank shares have jumped in the wake of plans, Royal Bank of Scotland and Lloyds shares up 6.4%, and Barclays 4.2% higher.

Hugh Pym reports.