The emergency measure would block hordes of French, German and Dutch nationals who would be desperate to withdraw cash here with credit cards if banks in their own countries dry up. It is feared a run on British banks could also result in them being unable to service UK businesses.
Emergency measure ... George Osborne Emergency measure ... George Osborne
Chancellor George Osborne has confirmed extensive contingency plans are being drawn up to safeguard Britain. The Treasury will not reveal specifics. But there will be limits on how much money can be deposited in British banks in any European stampede to "safe havens" like the City of London.
Such a rush would send the Pound soaring, dealing a crippling blow to British exports.
It has already emerged that the Foreign Office is working on a mass evacuation plan to bring expat and holidaying Brits home if Greece, Portugal or Spain suddenly implode.
And fears of an impending calamity grew yesterday after a record 412billion euros was deposited with the European Central Bank by individual banks over Christmas.
It proved how wary financiers are of lending to each other amid concerns a major Euro bank is on the brink of failure.
Warning ... Nick Clegg Warning ... Nick Clegg In another ominous warning, Deputy PM Nick Clegg will today predict that 2012 will pose "many great challenges for everyone in Britain".
The Lib Dem leader will use his New Year message to the party faithful to shore up the coalition with the Tories — buffeted by a series of recent bitter rows.
Mr Clegg will say: "Throughout, we have taken big long-term decisions that will change the way our economy works for the better. What we're doing is not easy but it's right."
