The FTSE 100 Index advanced today despite Chancellor Alistair Darling’s gloomy predictions of soaring borrowing and the worst year for the UK economy since the Second World War.

Speculation is mounting today that the British government may be preparing to increase its stake in the troubled Lloyds Banking Group, after Chancellor Alistair Darling declined to rule out the option of nationalisation.

The UK’s largest mortgage lenders vowed today to pass on the interest rate cut in full following pressure from Chancellor Alistair Darling.

British Prime Minister Gordon Brown and Chancellor Alistair Darling are to meet the Governor of the Bank of England and the Chairman of the Financial Services Authority in Downing Street at 5pm, the Prime Minister's spokesman said.

London’s leading shares plunged to a three-year low today as markets endured a second day of turmoil in the aftermath of the Lehman Brothers collapse.