UK bank shares have jumped following last night's announcement of a £100bn stimulus package for the UK economy.

The Bank of England and the government are set to provide billions of pounds of cheap credit to banks which they can then lend to companies, in an effort to insulate the economy from the impact of the eurozone crisis.

The new measures will see the banks given funding from the Bank of England below market rates, providing they sustain or increase lending to non-financial businesses.