$87.5 billion of taxpayer funds will be invested by the Treasury department into the country's eight largest banks and mortgage-lending institutions.
Prime Minister Gordon Brown says the plan had been worked on for weeks and given the current global turmoil, it was absolutely necessary to roll it out now. 
"Our stability and restructuring program is comprehensive, it is specific and it breaks new ground," Mr. Brown said. "The program is designed to restore confidence and trust in the financial system and more than that, to put the British banking system on a sounder footing and to build strength for the future so that it can support jobs and prosperity right across our economy." 
British Treasury Secretary Alistair Darling says the plan involves recapitalizing banks, boosting the amount of money lending institutions can borrow from the Bank of England in short-term loans and loan guarantees will be made available at commercial rates to encourage banks to lend to each other. 
"It is a really a fundamental step that we are taking but it is part of a process, it is part of a whole range of things that we are doing to support the economy," Darling said.