Crisis-hit British bank Northern Rock edged back from the brink of nationalisation today after the Treasury unveiled new funding guarantees to support a private sector rescue.

Richard Branson's Virgin Group is today reportedly planning a sweetened bid for Northern Rock as the British government is poised to outline financial support for a private sale.

Virgin boss Richard Branson said today he believed he had “the best bid on the table” for the ailing Northern Rock bank.

UK Chancellor Alistair Darling suffered fresh attacks over his handling of the Northern Rock crisis today amid speculation that the crippled lender faces imminent nationalisation.

A third major shareholder in crisis-hit lender Northern Rock today lent its backing to plans giving investors a bigger say over the future of the stricken firm.