Britain's response to the global financial crisis is to be put into the hands of a special emergency committee, Prime Minister Gordon Brown has said.

It will reportedly be modelled on Cobra, the Government's crisis-management team, and will bring together ministers, officials and advisers.

The news comes as savers rush to pour billion of pounds into accounts that guarantee deposits. Banks offering such 100% sureties have seen a significant surge in new business.

Savers are flocking to banks such as Abbey, owned by Spanish giant Santander, and Lloyds TSB, as well as Treasury-backed National Savings & Investments.

The Irish government has also moved to guarantee deposits in six institutions - Allied Irish Banks, Bank of Ireland, Anglo-Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society.

But British banks have challenged the Irish move as anti-competitive. The protection offered is far more generous than the £35,000 worth of savings protected under current UK legislation.

Meanwhile, shares in Halifax Bank of Scotland closed 21% higher amid hopes a rescue takeover by Lloyds TSB will go ahead as planned. HBOS had slumped 14% after fears the takeover deal could have to be repriced to satisfy Lloyds' investors.

In a stronger session for the London market, both banks were bolstered by support for the takeover deal from Prime Minister Gordon Brown, who is "confident" it will go ahead.

There still remained a big gap between Lloyds TSB's offer and the HBOS share price. Under the terms of the takeover, Lloyds is paying 0.83 of its own shares - currently equivalent to 207.5p - for each HBOS share, which closed at 148.1p.

Concerns that the Lloyds TSB-HBOS deal might have to be repriced arose due to the difference between the Lloyds offer figure and HBOS's share price.

The gap has been seen as an indication that the market is dubious about the prospects of a deal at the current price, as Lloyds TSB shareholders, who have to approve the takeover, may not be keen to pay such a big premium for struggling HBOS.

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