The runners and riders in the race to take over Northern Rock

Mr Darling's rescue package looks likely to provoke a fierce new bidding war for the stricken bank. Rival bidders include:

SIR RICHARD BRANSON

He appears to be in pole position to buy the bank - leading to criticism that his company was aiming to make enormous profits off the back of the taxpayer.

But the entrepreneur said he believed his Virgin Bank's bid for the Rock would recoup nearly £30billion in loans - netting the Bank of England a £5billion profit.

The entrepreneur - who faced accusations of a "cosy stitch-up" after he discussed the deal with Gordon Brown during the PM's trip to China and India - said: "The important thing from the taxpayers' point of view is that all the money that has been loaned to Northern Rock is paid back.

"We believe that will be possible and we believe most jobs will be saved."

OLIVANT

The private equity group Olivant looks likely to renew its interest in the Rock after initially flinching at the prospect of paying off £25billion worth of loans.

The London buyout specialist welcomed the Chancellor's proposal.

Chairman Luqman Arnold said: "We have always said our plan seeks to find common ground between all stakeholders in Northern Rock by restoring the fortunes of the company and its brand."

JC FLOWERS

The U.S. private equity house originally dropped out of the battle for the Rock because of concerns it would not raise the required £25billion to buy the bank.

Analysts say the firm is likely to be poring over the new financing plan. But it may have bigger fish to fry, with a possible £4billion bid for Friends Provident.

LLOYDS TSB

The bank could return to the fray because the Government has now announced exactly the type of guarantee it sought when the Rock's crisis was growing.

Executives held talks with the Bank of England to forge a secret takeover of the Rock before its plight was made public. But it backed off after the Government refused to underwrite its bid.

NORTHERN ROCK MANAGEMENT

The bank's board has worked up a "self-help" option which would see an in-house rescue package.

Led by chairman Bryan Sanderson, it could see the bank significantly scaled down so it could be run as a smaller company. But he has admitted this would "inevitably" see the workforce scaled down.