LONDON - ANALYSTS were divided on Wednesday on whether Britain's multi-billion dollar plan to support its ailing banks would be enough or whether it was too little too late.

The plan involves using taxpayers' money to buy major stakes in the country's major financial institutions, providing short-term loans and issuing a government guarantee on loans between banks.

It was unveiled hours before a coordinated rate cut by the Bank of England and other central banks including the US Federal Reserve and the European Central Bank (ECB).

But the British bank plan itself - which covers eight banks - had a mixed impact on shares in banks, and analysts seemed equally split over its effectiveness.

'It will help UK policymakers get ahead of the crisis,' said analysts Mr David Woo and Mr Paul Robinson of Barclays Capital, the investment banking arm of Barclays, one of the participating banks.

In addition it 'should provide an important buffer for UK banks if the global and domestic economic environment were to deteriorate further', they added in a note to clients.

Prime Minister Gordon Brown, whose previously strong economic credentials have been severely tested by the crisis, trumpeted the bank rescue as 'bold and far-reaching'.

But Mr Howard Wheeldon of BGC Partners noted that the plan would have been more welcome if it had been earlier.

'Perhaps a belated round of applause is probably the best way to greet the UK Government plan aimed at providing much needed financial market stability,' he said.

'Three or even six months late it may be, but this is a well thought out and radical plan and one that several European nations would do as well to all but copy,' he added.

Analysts at Citigroup were less impressed by the plan, writing that it was 'unlikely to be enough to end the financial crisis'.

'It is unlikely that the actions of any one country can return financial conditions in that country to normal. Moreover, these measures may well not be enough,' Mr Michael Saunders of Citigroup wrote.

Economists at Commerzbank saw the plan as a poor sign for 'light touch' regulation, which Britain has advocated in the past.

'The UK government's plan is a bold one, both in terms of the nature of its objectives and the way in which it has been conducted,' they wrote.

But they added: 'If ever an indication were needed that the Anglo Saxon capitalist model were in trouble, a government bail out to the UK banking sector provides it in spades.'

Some lobby groups and union leaders were also displeased that Britain was using government funds to rescue so-called 'fat cats' working for the country's banks.

'The government is using taxpayers' money as an easy way out, before having fully explored other options that wouldn't have put 50 billion pounds of our hard-earned cash on the line,' said Mr Michael Elliott of the TaxPayers' Alliance, which campaigns for lower taxes in Britain.

Several trade unions welcomed the plan, but cautioned that the government had to ensure that senior executives were not given excessive salaries on the back of taxpayer funding.

Brendan Barber, general secretary of the TUC Union, added: 'We welcome this bold package, but it is vital that the vast sums of taxpayers' money are used to change bank behaviour, not just bail them out.' 'Fat cats must be put on a strict diet.' -- AP