It comes to something when creating a national fiscal problem is the right answer. Yet that is the case in the UK. Government rescue proposals turn a problem of liquidity and solvency in banks into risk for taxpayers. Unlikely as it sounds, the Treasury may even make money from these plans one day. But the extra fiscal burden makes the need to set out a long-term plan to repair the public finances more acute.

The rescue package spelt out on Wednesday involves the government putting £25bn into banks directly as equity stakes – with the possibility of £25bn more. It will also take on some risk by guaranteeing £250bn of new interbank loans and will offer a further £200bn through the Bank of England’s special liquidity scheme.