By 4.30pm, the UK benchmark index had reached 4,118.37, up 8.92 per cent from today’s open of 3,817.59.
In his pre-Budget report, Darling told the Commons that banks must explore new ways of raising capital aside from the traditional capital rights issues.
UK banks responded positively with Barclays bank extending its gains from this morning to 145.80p, up 9.46 per cent. Barclays was trading strongly in the lead-up to the PBR, boosted by shareholder approval of the group’s capital raising plans announced earlier this afternoon.
Meanwhile Lloyds TSB was also up over 15 per cent to 143.50p and HBOS was up 13.37 per cent to 83.10p.