A £300BN rescue plan has been laid out to help save the UK financial sector and improve lending woes between banks.

The details as yet are slightly vague but in short the Government intends to insure banks against bad or toxic debt and provide cash in return for assets.

The ‘Credit Crunch’ has been caused by banks not lending to one another because of unknown levels of exposure to toxic debts.

The intention is to insure these debts therefore reduce the uncertainty between banks and get them lending to each other again.

Without more detailed information it’s far too early to know how successful the scheme will be and how quickly the effects will permeate through to where the results are needed most, UK businesses and consumers.

The Sky News story covering this talks of how the Government attempted to ‘Kick-start’ the economy last year with a £37BN injection into the banking sector

Other sources refer back to a £400BN bailout last October which included £250BN for guaranteeing new debt but clearly didn’t quite fix the problem.

Is another £300BN going to make the difference? We would all like to think so but in reality this is all ‘reactive’ action to a problem that has yet to be fully quantified.